MANILA, Philippines – Bel Land Development Corp.,,the newest real estate developer in Guam, is expected to lure more investors
to the US-administered western Pacific island, particularly Filipino businessmen who intend to expand their businesses in step with its growing economy.
As part of this thrust, the company recently unveiled its Tumon Bel-Air project located in the central business district in the upscale Tumon Lane in the Tamuning district. The project site is situated along a quiet street, fronting a golf driving range, with some of its units having a view of the mountains. The location is also a ten-minute drive from Palo San Vitores road — Guam’s equivalent of Makati City’s Ayala Avenue.
The fully-completed project will hold a community of 26 townhouses, 20 of which are now ready for occupancy. Each unit has a floor area of 871 square feet on the ground floor, while an additional 915 square feet is available on the second floor.
With the project nearing completion, there remains no uncertainty of it being left unfinished — a risk commonly found in other real estate developments. In fact, Bel Land has already sold 50 percent of its units.
An inner unit costs $438,000, while corner units go for $448,000 each. Gross sales are expected to hit $11 million for the entire development.
“The 20 units can be delivered today to the buyer and he can rent it out and earn from it tomorrow. There is no risk of speculation as the units are finished and can be delivered anytime,” according to Alessandra Lani Beltran, Bel Land vice president. She adds that from the time the project was constructed in 2007, the value of the property had already risen by 11 percent.
Should the buyer decide not to immediately occupy the unit, it could be rented out at $2,400 a month, giving him a rate of return of 6.57 percent, on the back of a $438,000 acquisition cost.
“Rental alone for each unit will give the owner 6 percent APR return on his investment. You earn this much while waiting for the value of the property to go up,” Beltran added.
On top of this value, Tumon Bel Air is also the only finished townhouse project in the area where buyers can actually own the units through the “Fee Simple” ownership system. This gives Bel Land a unique advantage over other developments in Tumon, where many properties are held on leasehold, which restricts buyers to owning the property for only for a limited period.
Beltran said the company is upbeat on the sales of the project given Guam’s growing economy. The island was the least affected by the financial crisis that crippled the US mainland, as business activity linked to the $16-billion funding for the relocation of the biggest US military base in the Asia-Pacific, from Okinawa to Guam, kept the economy afloat.
This, Beltran added, will prop up Guam’s economy and real estate market due to the massive infrastructure that is already being put in place to accommodate the influx of new Guam residents.
“Guam’s economy and real estate is set to grow over the next five years with the decision of both the US and Japan governments to infuse $16 billion and the decision to move the US base in Guam. This will be the major factor that will motivate investors to come to Guam,” Beltran pointed out.
Guam will initially receive more than $734 million, which is four times more than the amount appropriated for the Department of Defense for military construction this year, to bankroll the infrastructure build up. Construction of facilities is slated next year while the relocation of the US military base should be completed by 2014.