IRC Properties and Dell partner to develop residential area

Businessworld - REAL ESTATE firm IRC Properties, Inc. has forged a deal with Dell Equipment & Construction Corp. for the joint development of Fiesta Casitas, a residential subdivision to be located in the company’s present development in Binangonan, Rizal.

“[In] its meeting [yesterday], the board of directors of IRC Properties authorized the corporation to enter into a joint development agreement with Dell for the development by Dell of an 8.7177-hectare property of the corporation located in Binangonan, Rizal, into a residential subdivision to be called the Fiesta Casitas,” a disclosure to the local bourse showed yesterday.

Dell will develop the house and lot units in the Fiesta Casitas property, with IRC Properties earning from unit sales via an 88% to 12% revenue split in favor of Dell, the disclosure added.

Fiesta Casitas will form part of Sunshine Fiesta, the company’s socialized housing project that was jointly developed with property firm Dreamhauz Management & Development Corp. back in 2010.

Sunshine Fiesta has 4,290 units situated on a 30-hectare property, the company’s Web site showed.

IRC Properties, formerly known as Interport Resources Corp., was initially incorporated in 1975 as an oil exploration firm, drilling two wells in Mindoro and Sulu until the global recession in the late 1970s forced the firm to cut down on its exploration activities.

The company eventually shifted into the real estate business in 2008, with the changes to its incorporation articles being formally approved by the Securities and Exchange Commission last January.

Existing property

In 1978, IRC Properties acquired a 2,170-hectare property in Binangonan where two residential subdivision and condominium/townhouse units are currently being planned, the company’s Web site showed.

The Rizal-based real estate firm is rumored to be in talks with Ayala Land, Inc. for the possible development of this property, but no details have been firmed up so far.

This came as Ayala Land has expressed interest in developing large tracts of land north and east of Metro Manila in a bid to create mixed-use townships similar to its NUVALI development in Canlubang, Laguna.

IRC Properties slashed its January to March net loss to P2.39 million from P17.09 million last year on the back of income from its joint-venture with Dreamhauz.

Revenues for the period went up by 2,719.77% to P4.07 million from last year’s P144,338.00, while expenses fell by 62.51% to P6.46 million versus P17.23 million, year on year.

Shares of IRC Properties were traded unchanged at P1.28 yesterday.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.