Luxury residential condo a hedge to inflation

APART from boasting of its

''six-star-hotel-like status and

international standards''' for

''ultra-luxury'' residents in the

Philippines and hiring a Scottish

national for a general manager with

26 years experience in hotel

management, Essensa East Forbes'

30-story twin luxury residential

towers at the heart of the Global

City in Fort Bonifacio has all of

7,000 square meters dedicated to

nature for clean air.

The garden landscaped with tall trees, manicured lawns,

meandering streams, jogging paths, two swimming pools, a large

whirlpool spa and children's play area, the Essensa East Forbes

towers can easily become residents' sanctuaryfrom the polluted

urban jungles of the old metropolis. But it's not just the lush

landscaping or the architectural achievements of the team of the

Pei Cobb Freed & Partners (creators of world landmarks such as

the pyramidal Grand Louvre in Paris and Four Season's Hotel in

New York) and the Filipino architectural firm of Pablo Antonio

Jr. that sets it apart for now.

Cushion

The greatest impact Essensa may be bringing for now is the

confidence it has aroused in its real estate buyers and investors

who have seen this posh abode as a cushion to the impact of

the inflation rate. Proof of this is Essensa's having sold 200 of

its 236 units at an average price of P30 million each. With less

than 30 units left for sale, the creators of Essensa are,

figuratively, facing the east--hopeful for that majestic sunrise in

the local real estate horizon.

Real estate, said Century Properties Group managing director J.

Marco R. Antonio, is a hedge against the devaluation of the

peso against foreign currencies. ''As there are no permanent bad

times, people are seeing the real estate industry at its growth,

and people who want to take advantage of this opportunity are

coming in now. As a long-term investment and core holding,

people appreciate the quality of Essensa and the lifestyle that it

gives,'' explained Antonio. Century Properties Inc. is in charge

of the market concept, the planning and execution of the project.

Best investment

''Right now, what do people do to hedge against the peso? They

buy dollars. Sure, that's one way to do it. But another way is to

buy real estate, because real estate may most likely not devalue

at the rate the peso is devaluing. We could see values of real

estate remain at levels that they are today,'' said Antonio.

He added that with what has been happening in the general

economy, the real estate industry as a whole is affected. He

quickly added, however, that the medium- to long-term

prospects for the real estate field is ''good--if not great.''

''Now is the good time to enter,'' he enthused, ''As a lot of people

say, 'contrarian' investing is the best investing. The economy

has seen the worst and has taken a lot of punches_but we are a

resilient country and we still manage. As a matter of fact, a lot of

our sectors in the economy are actually showing better than

average growth,''' he said. Antonio cited the exports industry

which is showing positive signs and the IT industry growing at

a phenomenal phase. Antonio said that the ultra luxury market,

which Essensa is addressing, has the money. Even if the foreign

exchange crisis has hit most businesses, this particular market

will recognize the quality of real estate development.

Turnover

''As we get closer to turnover (of the units), we're busy

entertaining all of these people coming in,'' said Antonio.

It took three years for Meridien Development-Century

Properties Group to complete Essensa East Forbes--its flagship

development.

''Now, we are ready to turn over the first units of Essensa to

their owners, who can start moving in beginning end of

September,'' reveals Meridien Development Group-Century

Properties Inc. chair Jose E.B. Antonio. Essensa is also expected

to offer owners the fourth basic utility--cable Internet_in a

month's time.

Patrons

Essensa's patrons are characterized as people who are used to

five-star hotel services. These were classified by Essensa as

''empty nesters'' and the up-and-coming professionals in the

business world. Empty nesters are described as those aged 55

and above who want to scale down and simplify their lifestyles

from big homes. Such individuals could be found in exclusive

villages such as Forbes Park, Dasmari¤as Village and Bel Air.

''These are the people whose kids have graduated from college

and they're now stuck with bigger-than-needed homes. They are

actually a very big part of our target market,'' E.B. Antonio said.

People who are moving up in the corporate world belong to the

second category of Essensa's target market. Antonio described

these people as educated abroad and who have appreciated the

posh lifestyles in New York, London, or Paris.

Antonio considers Essensa as bridging the gap from a

traditional condo and a hotel, stressing that Essensa is actually

giving five- or six-star hotel services in a condominium which,

he said, is basically unheard of in the country.