Pioneering Advances in Real Estate, According to Buds Wenceslao, the CEO of DM Wenceslao and Associates, Inc. (Aseana City)

Armed with purpose and drive, Buds Wenceslao, the CEO of DM Wenceslao and Associates, Inc., sets out to continue the family legacy—building holistic real estate developments in the Philippines.

With a legacy of over 50 years—as well as many well-known developments and accolades to its name—DM Wenceslao and Associates, Inc. (DMWAI) is one of the leading integrated real estate development and construction companies in the Philippines. In fact, the Philippine Licensing Board recognized it as a Quadruple A (or AAAA) company—the highest license given to construction firms for meeting the strictest criteria, which includes having a net worth of at least PHP 1 billion, among others.

But the company's true claim to fame? Building a city straight out of Manila Bay.

Setting its sights beyond local terrain, DMWAI turned water into land—a whopping 2.4 million square meters of land. This meant that the possibilities in the realm of real estate and development were endless. From open spaces to office buildings, hotels, residential units, and more, the company has constantly built and leased land and buildings and has likewise completed over 140 construction and infrastructure projects since its inception.

Continuing the legacy paved by his grandfather and father, Delfin Angelo Wenceslao—known in business circles by his nickname, Buds Wenceslao—takes charge as the current CEO of DMWAI. Since his appointment in 2016, he has injected his personal brand and ideals into the Parañaque-based development, now known as Aseana City.

In this exclusive interview with The Business Manual, he reveals the company's rich history, his success secrets, the strategies in place for sustainability and continuity, as well as the most important thing: how DMWAI has constantly innovated to suit the ever-changing needs of the times.

Leveraging an Opportunity for Growth

Although the Wenceslao clan is foremost known for its foray into the real estate and development industry, the family also boasts an extensive medical background, given that Buds Wenceslao's mother, as well as several uncles and cousins, were in the medical profession.

For Buds, however, he knew his calling early on was in real estate and construction. "I got accepted into Management Economics in Ateneo de Manila, and the rest is history. Then I worked for an international real estate service and advisory company for about two years," Buds begins.

Eventually, he returned to the family business: DMWAI. Established in 1965 by Buds' grandfather, Engr. Delfin M. Wenceslao, the company was then continued by Buds' father, Delfin J. Wenceslao, Jr., who expanded the construction business to land banking in the 1980s.

"After several decades, we learned construction was cyclical and real estate was initially our strategy to smoothen out the peaks and valleys of the construction cycle. By real estate, I mean leasing and selling of land," he explains when asked about the transition from construction to real estate.

"I joined DMWAI in 2002 and was essentially the first employee of the real estate department," he continues. "Initially, the main task was simply to lease and sell our land in Aseana City. After about two years, we decided to undertake our first commercial development, which I managed from feasibility analysis to planning, construction, and leasing."

Seeing an exponential growth in real estate land prices—specifically in the year 2004—changed the mindset of the Wenceslaos. "We realized that selling land was not the best way to maximize its value. Hence, we decided to expand into vertical commercial development by finishing our first building in 2006."

"We’ve never stopped after that—owing to the primeness of Aseana City’s location," Buds says proudly. "To date, we’ve finished six commercial buildings and one residential condominium. We currently have nine buildings on our construction pipeline."

Building a Foundation for Success

Equipped with years of experience from working in the family business, Buds was now capable of leading the company as its CEO. Easing into the role, however, was made possible by his father and the foundation he built for the younger Wenceslao.

"My dad was a very big-picture person," Buds reveals. "I learned how to be very focused on the details in terms of executing strategies to complement his style. He never micromanaged me and my brothers. We were lucky because he allowed us to be entrepreneurs inside his company. We wouldn’t be where we are without him allowing the company to adapt and transform."

The same applies to his management style, which he learned from the patriarch himself. "Nothing beats the drive and determination of an entrepreneur to get things done. Our family, to this day, is still very hands-on. We are still very involved in the daily details," he adds.

Building the foundation, letting the children learn the ropes early on, exposing them to the company's operations, and giving them room to learn and grow within the business. This, according to Buds, is what old-generation business owners need to have to equip the next generation with the right mindset and skills to continue the business.

But more than that, he thinks that the family business should be built sustainably—ever-changing and ever-evolving with the times. And more than just a means to generate profit. "My dad always instilled in us that he was building this business for us, the next generation. My brothers and I have taken on the same mandate."

"We are but caretakers of this company and organization," he declares. "We are here to grow the business and improve the organization for the next generation."

Adapting and Growing From Failure

Like many business leaders, Buds faced his fair share of growing pains and failures in his formative years as DMWAI's CEO. But this did not deter the business maverick, as he used these mistakes as learning lessons to improve and become better.

"Making mistakes is part of the journey, and with the cycles of real estate, it's no different," the young CEO explains. "Every project we build is similar in terms of the process, yet they are very different in terms of the different problems that arise during construction. The key is to ensure that the mistakes are small and to avoid making the same mistakes."

"I think my first failure was doing my first vertical 3-storey project," he recalls. "I was in my early 20s and didn’t know enough about project management, so I made a lot of mistakes. I learned a lot from that experience. Working with people you trust will help you sleep better at night."

And while another challenge awaited him in 2020, Buds was grateful that he dodged a bullet—as the company's business model has rendered them immune to the unpredictable nature of the COVID-19 pandemic. "Real estate for us was a way to smoothen the peaks and valleys of being in the construction industry," he explains.

"Through real estate, we learned to move up in the value chain of higher margin and yield. Our recurring income businesses—leasing—were our main protection and defense, especially for unforeseen events like the pandemic," he says, further explaining that the passive income generated from leasing kept the company afloat. 

As for his insights on safeguarding businesses from most failures? "The key is governance, transparency, and communication. While we are a 58-year-old business, we are still learning to engrain, refine, and improve these aspects so we can be better stewards of the family business."

"Taking the company public is probably the biggest achievement because it spearheaded the company to professionalize, improve its governance structure, and at the same time, provide the company with long-term funding to grow the business," he explains.

Contributing to the Industry

Riding on the family coattails and nepotism are just some of the negative stigmas associated with family businesses, and Buds wants nothing to do with that. In fact, the young businessman has accomplished a lot for the business with his own skills, and that includes solving the age-old pain point of the real estate industry.

"Everyone has a niche, but I want the company to be known for investing in public infrastructure and spaces that improve people's lives," he says simply. "I think our main differentiator is our construction heritage and execution capabilities."

As for the long-term sustainability plan he has in place for DMWAI, it includes building and developing the millions of square meters of reclaimed land that the company has to its name. "The alpha is in development. Strategically, our growth potential is on a long-term basis, as we have decades of prime land left to develop."

"In terms of execution, our 58-year-old track record in construction has provided us with a  level of competence and excellence in planning, building, operating, and maintaining our projects," Buds says proudly. "This is reflective in our ability to project manage and undertake key scopes—whether electrical, mechanical, or interiors—of the development process."