PROPERTY DESCRIPTION:

Condotel Investments in the Philippines. The Lancaster Suites "Condotel" Concept

The Condotel Advantage only at THE LANCASTER SUITES, Metro Manila, Philippines

A Condominium Hotel or "Condotel" combines the convenience of a residential condo with the amenities of a hotel.

Unit owners in a "Condotel" may opt to join the rental pool where he signs with a professional hotel management team who will convert the project into a world class hotel / serviced apartment. A serviced apartment is run just like a hotel but guests usually stay on a long term basis. For the tenant, this means savings since he is not charged a daily rate nor does he have to put up a security deposit like in a regular apartment.

Aside from real estate appreciation, unit owners receive a steady monthly income based on the size of their unit regardless of whether said unit was leased or not. This is because the hotel management will pool together the total income of the entire hotel and distribute this to unit owners net of any expense. This makes the investment cost efficient and practically risk free.

Unit owners in the rental pool enjoy totally hassle-free CONDOTEL management. They need not worry about unpaid electricity bills, unpaid rent, and other problems so common in conventional leasing. All concerns, down to the payment of electricity bills and utilities are taken cared of by the professional hotel management operator. Lancaster Suites unit owners can sit back, relax, and wait for their monthly rental income from anywhere around the world.

Since Lancaster Suites is a full service Condotel, unit owners also enjoy full hotel services such as 24-hour telephone operator service, a local PABX telephone line in each unit (no need to apply for your own landline), 24 hour House Keeping service, Laundry pickup service on demand, even as a resident.

Pacific Concord Properties’ President & CEO, Mr. Ronald Lim is the author of the professionalized Condotel concept wherein unit owners in the rental pool get equal rental income per square meter; per month. Fairness is assured since all Lancaster Suites unit owners enrolled in the rental pool earn equal rental income based per square meter. All unit owners will earn the same amount per square meter regardless of actual unit usage. This makes the Lancaster Suites a profitable, transparent and fair investment especially for foreigners and overseas based Filipinos.

At Lancaster Suites, there is no property Management Fee.

The Lancaster Suites [Manila] is designed and conceptualized as a private residential Condominium Hotel ["Condotel"] or a fully serviced private residential condominium building with all facilities of a Hotel, Room Service, 24 Hour Security Guards and Reception, PABX Telephone Operators etc…………

The units in the building are all privately owned by the respective buyers. The unit owner has the "option" of enrolling his or her unit in the Lancaster Suites "Condotel" Rental Pool. The building and the rental pool will be managed and operated by Lancaster Hotels & Resorts which is a affiliate company of the Owner/developer Pacific Concord Properties, Inc., If the unit owner opts to enroll a unit in the "Rental Pool" there are no upfront or any kind of "Management Fees" payable whatsoever. The unit owner merely has to enroll the unit for a yearly period, however they may still use the unit for 1 month within the calendar year with notice….

The Lancaster Suites will operate as a Private Hotel and will source clientele from Travel Agencies, Advertising, Local Chambers of Commerce, Business Establishments and other prominent organizations in the Ortigas Center area etc as would any other Hotel in Manila…….

The Lancaster rental pool will operate on a "Co-operative" basis. Example: There are 50 units enrolled in the pool with a total floor area of let’s say 1,500 square meters. The Hotel room operations derive a monthly rooms rental income of let’s say 3,000,000.00 pesos for the calendar month. The unit owners will receive a 60% share of the net proceeds as share of the rentals. This however will be paid as a "Dividend" based upon the total floor area of the rental pool. Example: Proceeds in Pesos 3,000,000.00 x 60% = 1,800,000.00 divided by the total floor area of the rental pool units [1,500 sqm] = 1,200.00 pesos per square meter which will be paid as the monthly rental dividend. Hence, if you owned a Studio Unit in the rental pool, you share of the proceeds for the month would be your floor area, example 28 square meters multiplied by the dividend of 1,200 pesos. Ergo: your rental income would be 33,600.00 pesos monthly. This is pro-rated whether you own a Studio, 2 Bedroom [Example given: 65 sqm x 1,200 = 78,000.00 pesos monthly rental income] or even a Penthouse Suite

Moreover, because this is "Cooperative" basis, even if your unit was not actually used during the month you still get a share of rental proceeds because of the pro-rated pool sharing system of dividends…

There are in all Condominiums the "Monthly Condominium Dues" payable to cover such recurring expenses as the maintenance of the common areas, security guards etc…. and this will be around 60 pesos per square meter based upon you unit size. Annual Real Estate Taxes are around 8,000 pesos for the Studio units.

The Lancaster Suites is Full Property Ownership

Not Time Sharing

Most real estate "Agents" would seem to have a totally incorrect about Condominium Ownership in the Philippines that a Condo Unit can be only be owned for 50 years. This idea wherever it came from is total bull. The property held by Pacific Concord Properties, Inc., for the Lancaster Developments is a "Freehold" property. It is free from all loans, mortgages and any other encumbrances. The property is not leased. The land where Lancaster Suites [Manila] is located is fully owned. It is covered by a Land Certificate of Title reproduced in the corresponding owners Transfer Certificate of Title [TCT]. This applies to all Condominiums in the Philippines registered under the Condominium Act [Republic Act 4726]……………

Lancaster Suites [Manila] is fully owned and titles issued and transferred into the name of the Condominium Corporation in accordance with the Condominium Law. The Lancaster Manila Condominium Associations are incorporated and registered with the Housing & Land Use Regulatory Board ….

Each individual unit [as well as all the "Common Areas"] in the building are covered by, and owners will be issued a full Condominium Certificate of Title [CCT] representing their ownership in fee simple of the Condominium Unit.

There is no "time limit" as to ownership of the Lancaster Condominium Units. This [Lancaster] is not a "time sharing" Condominium. However, where the "50 Year Term" is applicable is the charter of Corporations under the Corporation Code. This has nothing to do with ownership of a Condominium Unit per see. However, you must fully understand the mechanics of a Condominium Corporation, that owns and holds freehold titles to the land, of which the unit owners are automatically stockholders and members and the rights and privileges of owning a Condominium Unit covered by Condominium Certificates of Title representing ownership in fee simple of the unit.

As with any Corporation, the Lancaster Suites Manila Condominium Associations will have stockholders and members. The Stockholders and Members will comprise of each and every holder of a Condominium Certificate of Title [CCT] of a unit in the building. This is where the 60% - 40% ownership rule by Filipinos/Non-Filipinos derives and is applicable as it is the Condominium Association that owns the Land and holds "Freehold" title thereto. Each holder of a CCT is automatically a stockholder and member of the Association and has all rights and privileges as a stockholder of any corporation. He has the right to vote [according to the number of units he owns] and he is also entitled to pro-rated share of the assets of the Corporation upon it’s dissolution which can only be done by a majority 2/3rds vote. In this case the "assets" of the Corporation are Freehold Land Titles together with Titles to the "Common Areas" of the building.

Now here’s where the 50 year thing comes from…… A corporation under Philippine Law has for it’s Charter the existence in Law for a period of 50 Years. At the end of the 50 years, the then Stockholders of the Corporation [which are all CCT holding unit owners] may vote to renew the Corporate Charter for another 50 years…. Or vote to dissolve the Corporation in which case the "Assets" of the Corporation may be sold and proceeds equally divided among the stockholders on a pro-rated basis. This means that a unit owner in a building of let’s say 300 units assuming he owns one unit would get a 1/300th share of the proceeds of any sale of the assets….

Lancaster Suites Manila Atrium Tower II

The Current selling price Lancaster Manila Atrium Tower A Studio Units at Pesos 64,888 or $1,298.00 per sqm are Tax Exempt will increase to Pesos 74,888 or $1,498.00 per sqm Effective October 1, 2006. The One Bedroom, Two and Three Bedroom Suites are currently priced at Pesos 72,674.56 or $1,453.76 per sqm will also increase to Pesos 83,874.56 or $1,677.76 per sqm including Government Taxes [R-Vat 12%] effective October 1, 2006. Five Year No Interest Charge Terms of payment or up to 12 years "In-House" financing plans. Completion and Turnover of units for Tower II will be from December 2009.

All payments will be made to the specific Lancaster Suites Manila Atrium Tower A Equitable PCI Bank Escrow Trust Account. It is anticipated, given the track record on sales of Tower I Units that property appreciation for initial buyers of Tower A Atrium Units will be at least 70-80% on completion and 100% on turnover of units from December 2009

With current Global Structural Steel and Reinforced Steel Bar Prices increasing some 50%, we anticipate further price increases effective from December 2006