Public-Private Partnership Development:

Lanebrook submitted a study to Clark Development Corporation (CDC) for the development of approximately five (5) hectares of land located at the back of Hollywood Park within the Clark Freeport Zone (CFZ), former United States Military Base – Clark Air Base located in Pampanga, Philippines. We will develop the 5-hectare property into a senior retirement community and divide them into two parcels representing two small communities of about 2.5 hectares per parcel. We conducted site surveys, site analyses, topographic modeling, site planning, and financial planning. 

Development Approach:

Initially, we planned the development as a single-family residential and single-story attached residential townhouse/duplex. However, after conducting several financial analysis iterations, the type of product offering was changed to meet the benchmark lease rate required by the Clark Development Corporation (CDC). We increased the density from single-story and two-story developments to six-story medium-rise development projects, which effectively creates more leasable units where rent for CDC can be levied on. Furthermore, we iterated the design to include new unit floor plans and initial site development plans. 

The plan was to develop the property into 3 phases where each building is a phase of about 90-120 units. Upon full development of each parcel, each building will be interconnected to the earlier phase resulting in a U-shaped building. The project also assumed one building development per year that can be expedited depending on actual market take-up.

 Financial Approach:

Because of the change in the product type, there was a change in the projected rental rate to the target lessees to improve the override rate for CDC from 18% to 30% of actual rent collected, net of taxes, and discounts. The proposed project will have over 300 units for every 2.5-hectare development. Upon full development of the 5-hectare project, the monthly rent will now go up to P2.0m (from P509k) or P40.13/sqm (from P23.60/sqm.). The rent is escalated at 3% per year so by end of the 25-year lease period, the total rent payment will be P702m or P46.83/sqm. per month average rent. This will go up to P2.29b for 50 years or P76.27/sqm. per month average rent.