It was the first horse racing club in South East Asia, meant to provide recreation and entertainment for the social elite.
The Manila Jockey Club (MJC) was founded by the Spanish Governor-General in 1867 to conduct horse races. Among its 100 socio fundadores were members of affluent families, some of which still dominate local business today: Ayala, Zobel, Tuason, Elizalde and Prieto, among others. From being a popular social club, MJC was formally incorporated as a business entity in 1937.
It was acquired from the Prieto family by a group of investors led by Atty. Alfonso Reyno Jr. now the MJCI’s Chief Executive Officer and President.
From its original 16-hectare location in Santa Cruz, Manila, it was relocated to Carmona, Cavite which is about a 30-minute drive from Makati.
The transfer enabled the company to expand into its 77-hectare property acquired from the Kuok Group and engage in the development and sales of residential complexes under joint venture arrangements.
“My family was not really into horse racing,” explains Atty. Alfonso G. Reyno III, currently MJC’s EVP and Chief Operating Officer. “But our business activities with a group of Filipino and Malaysian real estate investors eventually led us to acquire MJCI.”
Because the company’s principal business is constructing, operating and maintaining a racetrack, its real estate clients naturally included MJCI horse aficionados such as horse owners, jockeys, bettors and spectators who came to watch the races.
Joint venture with Ayala Land, Inc. In line with MJCI’s vision to expand its business operations and enhance the value of its shareholders’ investments, the company entered into a joint venture with property giant, Ayala land Inc. (ALI).
With ALI, MJCI was able to develop several portions of its property in Sta. Cruz, Manila into residential and commercial complexes, including Business Process Outsourcing centers. A BPO building, called Vertex One consisting of 14 stories, was completed and opened in December 2008.
It is considered to be the largest BPO facility in Manila providing approximately 6,000 jobs for the city’s residents. MJCI operates two special economic and Atty. Alfonso G. Reyno III : the real estate industry is booming 38 | Real Estate World tourism zones, one being the San Lazaro Tourism and Business Park in Sta. Cruz, and the other being the San Lazaro Leisure and Business Park (SLLBP) in Carmona, Cavite.
Last February 2009, the entire Sta. Cruz property was declared as a PEZA- registered Tourism and Business Zone with IT components.
MJCI also retained full ownership of 2.5 hectares in San Lazaro Manila, which it will develop into a lifestyle entertainment center that will cater to the growing population in Manila.
In 2006, MJCI in a joint venture with ALI’s subsidiary, AVIDA Land Corporation , launched the AVIDA Towers San Lazaro comprising of five towers, with its units almost sold out.
Another ALI subsidiary, Alveo Land Corporation launched the Celadon Residences and Celedon Park consisting of townhouses and condominiums catering to both middle and upper class markets. Not to be outdone are the company’s projects in the SLLBP in Cavite. One such project is the Canyon Ranch, a community spread over 17 hectares of pristine land that offers spectacular views of Laguna de bay, Antipolo, Mount Makiling and the world-class Manila Jockey Club twinoval track. Canyon ranch is the only first-class, private residential community in the country that is complimented with exceptional terrain, location and climate. It is on the foothills of Carmona, Cavite and its elevation affords free flow of fresh and cool air into the community. The unique homes at Canyon Ranch combine the natural charm of country life with modern, contemporary living. Another 20 hectares of land in San Lazaro Carmona will be developed into more residential dwellings like townhouses and high-rise condominiums.
Issues to address Atty. Reyno believes that there is no crisis in the country’s real estate sector and that the industry is booming, unlike the US and European housing markets that are still unstable. The US housing sector particularly continues to experience falling prices even on prime properties. He, however, points out major issues that have to be resolved in the local real estate industry: credibility, integrity, speculation, lending rates and financing schemes. According to him, “The failure of other developers to deliver their commitment affects the credibility of the other realty companies.”
Another issue he expounded on is the issue on speculation. “Some people buy units but don’t live in them,” he notes. “This may create the impression that these units do not live up to expectations and give rise to excessive supply within a fairly quick period.”
Meanwhile, the policy environment on lending rates and financing schemes should be such that we avoid the financial crunch such as the one triggered by the sub-prime crisis in the US. It is important to sustain the real estate business, according to him, because it creates a multiplier effect.
“It provides business to local manufacturers. Construction sites that require engineering professionals (electrical, mechanical, construction, etc), provide employment to laborers, while providing housing for families” he says.
In MJCI’s case, it also generates tourism revenues from the hotels, condominiums, recreational areas and horse racing which attract both local and foreign clientele. In these ways, the company contributes to the strengthening of the national economy, he adds.
When asked about his expectations from the incoming administration, Atty. Reyno is optimistic.
“There is an atmosphere of hope which translates to a positive attitude towards the Philippines as a whole,” he says. “There is a new and upbeat mood in the business and investment community. If the Aquino administration lives up to its programs and promises, then it can influence a healthy, profitable business climate.
We acknowledge that we have a new President who possesses charisma and commands trust. He should capitalize on the goodwill that he has earned for the country so we can attain growth and stability.” - GTM
