PRIMEX Corp., a boutique property developer, is venturing into the serviced-apartments sector as it tries to grow its recurring income on top of leasing some of its spaces on its soon-to-be-completed projects.
Ernesto Ang, the company’s chairman and president, said the serviced apartments will be located near the exclusive schools in Greenhills, San Juan.
He said the company tapped a leading serviced-apartments operator for the venture.
“It’s walking distance to one of the gates of Xavier School. The new students are our target. Every year, Xavier and the Immaculate Conception Academy in Greenhills accept new students. They come from places like Marikina and Baclaran, places that are too far from the school,” Ang said.
“The parents of these students can afford [to buy a house]. But in the meantime, they have to settle their children either in a hotel or serviced residents,” Ang said.
He did not say how may units will be built for the venture since the plans are still being revised.
Ang said some of the units will also be for sale.
Aside from the serviced apartments, the company said it is earmarking P3.6 billion for the development of its 50-story Primex Tower in San Juan. Ang said the company is currently discussing with a foreign firm the development of the project into an office development that will also serve as the future headquarters of the Primex Group.
Ang said the project will cost P2.6 billion to build, while the 1,944-square-meter (sq m) lot where it will rise is valued at P1 billion. There are still tenants on the land where the tower will be built, such as a Caltex gasoline station. Ang said they already notified the current tenants to vacate the lot to enable Primex to start construction of the project possibly within the year or early 2018.
Primex is also preparing for the development of its 7-hectare lot in Tagaytay, which sits in front of the Villars’ Crosswinds development.
Ang said the company is planning to build 10 mid-rise buildings of about six floors each.
“Properties in Tagaytay have already risen to P150,000 per sq m, which is comparable to Makati,” Ang said.
Ang is confidence of Primex’s posting high double-digit growth in its income bottomline this year from last year’s P185.1 million, despite a slow start for the year.
For the first three months of the year, the company’s net income reached P29.24 million from last year’s P28.59 million.