Why Sta. Lucia ventured into house construction

ABS-CBN News

Posted at Jan 26 2015 04:54 PM | Updated as of Jan 27 2015 12:54 AM

MANILA – Sta. Lucia Land Inc. (SLI) is confident that its house construction arm, Sta. Lucia Homes (SLH), will help address the gap between lot buyers and contractors.

SLI said it has seen that most of its lot buyers face issues such as limited access to contractors and bank financing in building their homes.

“Majority of our lot buyers do have the intention and the initial capital to construct houses, but has limited access to contractors, difficulty in securing the necessary business permits and little or no access to bank financing,” said David dela Cruz, SLI and SLH executive vice president and chief financial officer.

“We have seen this gap and decided to offer our buyers a reliable contractor to address all their construction, documentation and financing needs,” he added.

SLI incorporated SLH in 2014 to offer construction services to its more than 120,000 lot buyers.

“SLH is the company’s contribution to the country’s housing backlog of 3.9 million houses, which benefits not just our current customers but the communities within the area as property values will increase once houses are constructed and communities are developed,” the company said.

SLH general manager Ria Rivadeneira said the firm estimates that more than 60,000 of its lot buyers nationwide have yet to build homes.

She admits that constructing homes for its lot buyers is a challenge, but noted that its agents are still in touch with thousands of lot buyers who have yet to build houses.

“All we need to do is to reestablish these relationships,” she said.

The firm also believes that house construction is not only profitable, but will also give a significant boost to its financial performance.