Federal Land to expand into middle-end segment

Property developer Federal Land Inc. is set to expand its presence in the middle-end segment market, with focus in the Bay Area and the University Belt in Manila.

Federal Land said the diversification follows its success in the high-end and luxury segments, as it sees stability in the middle-end segment.

"We did not anticipate that these high-end products would do very well, but we thought that we have to be conscious of diversifying the portfolio which is something that we've had in the past," Cathy Casares-Ko, executive vice president, said in Lamudi's The Outlook roundtable Wednesday.

Among the projects developed by the company are the Grand Hyatt Manila in Bonifacio Global City and the Grand Midori in Ortigas.

"We were focusing on the high-end more, so now we wanna go back to developing the middle-end markets," Ko said, noting that the next projects will target students, workers and those looking for a second home.

"Our areas of focus right now, we want to still develop... We have sizable properties still in the Bay Area, the University Belt in the Manila area. Those are the two areas we want to focus planning efforts on this year," Ko explained.

At present, most of the properties of Federal Land are located in Metro Manila, with some in Cavite which the company seeks to utilize to boost its portfolio.

"If we grow too aggressively then we have to keep on land banking, so that's something. We've identified our pipeline for the next 10 years, so we know that we have to adopt I guess a more adoptive stance towards land banking," Ko said.

"Let's activate na the ones in Cavite so that's what we're doing now, so that by the time we run out of inventory in Manila, we have inventory available already (in Cavite)," she said. —LDF, GMA News