On February 25, 2010, I wrote about Manosa Properties’ project – Lantana Lane Townhome Community in New Manila, Quezon City. It’s a low density boutique townhouse project consisting of just 14 units on a 3,171 square meter of flood-free real estate. In that post, I emphasized that the company is a real estate development manager, NOT a developer.

This post will discuss the tremendous savings and sense of security that a home buyer gains by investing into a project of a real estate development manager (or simply, development manager) like Manosa Properties compared to that of a traditional developer. Other project related issues will also be discussed.

Lantana Lane’s Direct-Cost Development Model vs. a Traditional Developer’s Model

The development manager (Manosa Properties) puts the project together by getting the investor to invest in a unit of his choice. The investor subscribes to the project by depositing an agreed amount into an escrow account at Banco de Oro. This money earns interest.

This money is disbursed monthly by Banco de Oro to 3 entities: Manosa Properties, the landowner, and the general contractor based on the construction schedule and actual progress.

In Lantana Lane’s direct-cost development model, there is no development or construction loan. Taxes are also significantly low since the project is VAT-free, a privilege that a development manager is entitled to. On the other hand, developers are required by law to pay 12% VAT that is traditionally passed on to the buyers.

Note about the images above: the pictures of the facade ware taken over a year ago when only 1 block was being constructed. Currently, all the blocks have been constructed.

The biggest benefit, however, is the assurance that the investor’s money is spent directly on the completion of the project. Since the money is held in a Trust Account, he is guaranteed that his money will not be used by Manosa Properties for its overhead or for another development.

What makes Lantana Lane’s Direct-Cost Model unique?

Lantana Lane’s “direct-cost” model is comparable to building your own home, and paying your contractor and suppliers directly for the cost of construction. Manosa Properties simply charges a professional fee of 10% of the actual project cost. Compare that with the 12% VAT that developers pass on to their buyers plus their profit margin that commonly starts at around 35% of the actual project cost.

The project cost at Lantana Lane is around P61,000 per square meter for the fully fitted units and P49,000 per sqm for bare units. Given the same design and specifications, a traditional developer would charge around P89,0000 per sqm for the same project or about P26.6 million per unit on average.

Since Manosa Properties does not earn any profit from Lantana Lane, it has to protect the project from construction materials price fluctuations.

Contingency/Protection Budget

An amount equivalent to P350,000 for the fully fitted unit and P250,000 for bare unit is set aside to protect the project from any unforeseen price fluctuation of construction materials. This amount is already incorporated into each unit’s Contract Price. In case Manosa Properties needs to dip into this fund, it shall be immediately reported to every investor. Should the project be completed without any need to touch this fund or if a balance remains, it shall be converted into a sinking fund from which the investors’ monthly association dues shall be deducted.

Fully Fitted unit vs. Bare Unit

An investor may opt for a bare unit at Lantana Lane. This is Manosa Properties response to those who prefer some flexibility in the interior design of their units, provided that no part of the exterior shall be altered. Each bare unit is P3 million pesos less than a fully fitted unit.

A bare unit will NOT include the following:
Floor finishes and topping
Interior waterproofing
Stair finishes, wiring and devices
Cabinets and closets
Kitchen counters
Bathroom fixtures, toilets and tile works
All interior doors
Interior paint
Switches and interior electrical wirings

The following are included in a bare unit:
All windows
All exterior finishes (araal stone in the façade), exterior paint, landscaping, front doors, garage finishes, fire protection
Penthouse roofing, casita and sliding door

Parking Spaces

There’s a barangay resolution in Bgy. Mariana (where Lantana Lane is) that requires real estate developments to provide 2 parking slots for each dwelling unit plus 2 common parking slots per unit for the residents’ guests. These 2 additional parking slots, however, can be used by the homeowners if they have more than 2 cars. These 4 parking slots are, therefore, free unlike in another form of real estate development where a single car slot costs an average of half a million pesos.

If a resident has several guests, there’s an additional 10 parking slots outside the gated community.

Professional Property Management

Lantana Lane will be managed by a professional property management group. A full-time Property Manager will hold office on site together with a secretary and a maintenance/electrician staff who will be on-call.

It is Manosa Properties’ policy to maintain transparency by requiring the Property Manager to show all residents how their funds will be used. He is also mandated to ensure that each unit’s value appreciates.

Monthly Association Dues

Based on current estimates, monthly association dues will be between P8,000+ and P11,000+. Compare that in one of the upscale condominium projects in Bonifacio Global City where monthly dues can run to as high as P20,000. Note again that the monthly dues in Lantana Lane will be periodically deducted from the sinking fund coming from the contingency/protection budget that was incorporated in the unit’s Contract Price. The monthly dues already include a fund for the repainting of the units’ exterior after the first 3-5 years. Homeowners, therefore, shall no longer be assessed for the repainting cost.

Click here to see the breakdown of the estimated monthly dues in PDF format.

The Technical Team

Development Managers – Manosa Properties, Inc.
Architect & Engineers – Manosa & Co.
Land Owners – Marga Real Estate Corporation
General Contractor – Konstrak, Inc.
Marketing Managers – Manosa Properties, Inc.
Quantity Surveyors – Asian Technicon Managers & Consultants
Legal Consultants – Mendoza Law; Pacis Law; Verano Law; Gregorio Law
Feng Shui Consultant – Mario Uy

Only 3 units remain available at Lantana Lane

This is your last few remaining chances of owning not just a home but a piece of art created by world renowned National Artist – Architect Francisco “Bobby” Manosa.

The available units are G, L and N. Unit G has a garden with an area of 27.70 square meters. The units are priced as follows:

If you want to know more about this project, kindly get in touch with me using the Contact form above or you may contact me via 447.6328 or through 0929.609.7142.

For those who are seriously considering to invest in this project, I can furnish you a very detailed list of the units’ materials and construction specifications. I can provide said specifications during the viewing of the project.

Thank you so much.

Jun Sanchez
Licensed Real Estate Broker
PRC Registration Number 4562

P.S. Kindly click the following link to read my February 2010 blog about Lantana Lane.