According to TLDC CEO Tomas P. Lorenzo, this move formed part of the company’s efforts to diversify into the hotel and leisure sector, after carving a niche in developing premium university residences.
For Dusit International, the continued partnership was similarly part of its aggressive expansion strategy in the country.
“Our real estate development expertise and Dusit’s mastery of hotel management perfectly complement each other to make for a sustainable partnership,” Lorenzo said.
“As a developer, our ability to anticipate the needs of future communities and provide that elevated lifestyle we see today is what sets us apart. We remain sensitive to the needs of our market, and build structures for them. For the investor, our properties promise real returns on investment that our partnership with the Dusit International Group will only increase,” he added.
TLDC’s move to diversify into hotel and leisure developments was also meant to balance the company’s revenue sources. The target was to raise to 25 percent the contribution of revenues from hotel and leisure projects by 2020, and eventually increase it to 40 percent, with the rest coming from sales of condominium units.
Evelyn Singson, president of Philippine Hoteliers Inc., is also optimistic of their partnership with TLDC as both companies share the same values.
“Based on the fundamental values we share, we feel that we can work closely together and mutually promote each other’s interest. We feel that we are compatible and we are happy to work with them,” Singson said.
“We are aligned with their vision to build for the future, admire their deep understanding of premium living, and their perseverance to compete in a market already saturated with so many options,” she noted.
Singson added: “Rooted in the Thai culture of grace and warmth, the Dusit brand has corresponded to world class service and comforts for our patrons for the last 65 years. We now bring our brand of hospitality to the Dusit Princess Lipa Hotel and the Dusit Thani Hotel at Lubi Plantation in Davao as part of our happy partnership with Torre Lorenzo.”
The Dusit Princess Lipa Hotel in Batangas, scheduled for completion in 2021, sits within an urban lifestyle center, while Dusit Thani Hotel at Lubi Plantation is a five star luxury resort located on a 36-hectare leisure development in the Davao Gulf.
These two new hotel projects are said to complement TLDC’s growing portfolio of property developments, and the decision to invest in these provinces further acknowledge the growing economies of these centers.
To date, the partnership between TLDC and Dusit International spans across four projects with investments reaching a combined P9.4 billion.
Apart from the hotels in Lipa and Lubi Plantation, TLDC and Dusit have also invested P4.5 billion to put up Dusit Thani Residence Davao and dusitD2 Hotel, the first five-star luxury complex in Davao and Dusit International’s first residence in the Asia Pacific region.
According to Lorenzo, the decision to have a presence in these provinces was primarily “market driven.”
“We don’t really follow the crowd. We identify the needs (of the market) from our road shows abroad. We talk to the clients and so we get a lot of our insights from the market,” he said.
“So if people come to us and ask if we have a project in Batangas, we would try to look at that area. We look at growth areas which others have not seen yet, and (our decision to be in these areas) are usually validated because people follow what we do. We’re small enough to move quickly and establish our presence before the others come in,” Lorenzo added.
More university residences
Despite venturing into other property segments, TLDC meanwhile continues to put up more premium university residences to cater to a growing demand.
TLDC recently launched Torre Malate, which aims to elevate the lifestyle of the people in the area. Located along Malvar Street, this high-rise residential project is near schools such as UP School of Medicine and St. Paul University; and malls and hospitals.
Units at Torre Central, which is near the University of Sto. Tomas (UST), are expected to be turned over within the quarter, while construction of the third tower of 3 Torre in Manila is already underway.
TLDC will soon be launching the P2-billion Torre Lorenzo Loyola, which is targeted for completion by 2021.
“All our projects are underway and generally within our timetables. We are excited for these projects as these support our dream of making Torre Lorenzo a more exciting company,” said TLDC chief finance officer Emmanuel Rapadas.
“We have a sellable inventory worth P6.2 billion, sufficient to support us over the next 18 months. We see a solid real estate sector for the next five to seven years and together with that, we remain confident that our business plans will be achieved,” Rapadas concluded.
Article source: http://business.inquirer.net/245746/torre-lorenzo-dusit-thani-forge-stronger-partnership#ixzz58pzoXbyl