Opportunity in a foreclosed memorial park at the north

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 20, 2019

I was invited to a meeting two Fridays ago regarding a 6 hectare  foreclosed memorial park at the  north...Foreclosure amount was P15M, with only 200 plots remaining for phase 1 (only 2,000 salable) plots.

The lady who invited me a JV partner owed her still P4 million (that was borrowed to partially pay of the lender.  Despite that P15 million pa utan.

The owner herself is hopeless.  As it is it looks really hopeless   Sales were sometimes 3 to 4 a month, not enough to pay operating expenses much less pay off the loan.

The good news are:

1.  There could be a total of 3.5 + 3 hectares more to develop;  for the 6.5 hectares available,  we can
      produce still:   6.5 x .55/2.5  =14,300 plots x 45 K  = P643,500,000.   That could:  be used for
      development  -   say

                            Development cost                                            P64,000,000 m
                         
                            Bank foreclosure                                              P15,000,000
                             and the lady lender                                              4,000,000
                         
                           and cost recovery by the land owner.                           
                           say 65,000 sm x 1,500 /per sm                           P65,000,000

                                                         Total                                      148,000,000


                                                                     Total estimated rev   643,500,000

                                                                     less 50%                   321,750,000

                                                                     Net lot price             321,750,000

                                                                     Less                          148,000,000

                                                                                                      173,750,000

                           


2.  The town is a first class municipality and classified by Wiki as financial and commercial center of
     province.  There are 25 banks in the town and there is a Savemore, Jollibee and KFC

3.  Their pricing is at P1,800 per month.  But buyers say if it is P800 per month or less tatakbo;
     Acceptable pricing is P45K up...

4. Sementado na road papuntang site; 

5.  It is nice memorial park at the hill, katapat municipal cemetery