A strategic management study for Laguna Properties Holdings, Inc.

Date of Publication

1999

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

LAGUNA PROPERTIES HOLDINGS, INS. (LPHI) is primarily engaged in mass housing development. The company traces its roots in 1980 when Ayala Land, Inc. (ALI), one of the countrys largest, full-line real estate developer decided to expand their traditionally high-end residential housing products to a wider range of income groups.

It was in March 0f 1993, when LPHI was finally spun off from a mass housing division of ALI to an independent, wholly owned subsidiary to address the rising demand for low and middle income housing market, This move gave the latter greater latitude to pursue its development activities and the autonomy to undertake its own expansion programs. At present, with almost six (6) years in operation, LPHI has proven its performance through technical expertise in the use of building systems and quality housing products. And with a total market capitalization of Php 3.5 billion, the Company stands as one of the most active, financially stable companies in the Philippines mas housing industry.

Apparently, the Asian Currency Crisis that strikes in mid 1997 has unfavorable effects on the macroeconomic conditions of the country and thus the mass housing industry, which is substantially dependent on the economy. This period has been dominated by falling stock markets, rapidly declining currencies, and increasing number of bankruptcies. As a result, there was a noticeable slowdown in sales take up as well as the development activity among property developers. A price softening has begun to emerge followed by the added strains of higher interest rates and more cautious stance of banks towards mortgage financing.

Although the impact of this downturn has been erratic and the effects are still widely being felt today, hopes for early recovery is seen to start by 1999. The Philippine government is confident of an upward growth pattern over the medium terms. The basis for growth projections include recovery in investment, sustained export performance, strong personal consumption, continuous infrastructure development, increasing remittances from Overseas Filipino Workers and declining / stabilizing interest rates.

The present situation of the mass housing industry, meanwhile, shows that the number of households needing shelter is still continuing to increase. Latest records show that the backlog, the bulk of which is the low to middle-income segments, is estimated at 3.72 million units for the period 1993 to 1998. This has prompted the government to make housing a priority. State controlled financial institutions are increasing their commitment to funding requirements, while the private sectors participation is likewise encouraged.

This has resulted to the information of a number of housing developers from the private sectors. Among the major players in the industry are Carmella & Palmera, Fil-Invest Land, Laguna Properties Holdings, Inc., and Empire East Land Holdings, Inc.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE0091

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

iii, 164, 11 unnumbered leaves ; illustration ; 28 cm.

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