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
