Saturday, April 19, 2008 [ sunstar.com.ph ]
By Debra Magallon-Estero
Sun.Star Correspondent
THERE are more than 154,000 square meters of office space in Metro Cebu registered with the Philippine Export Zone Authority (Peza) for information technology (IT) companies.
Having more space for IT and business process outsourcing (BPO) operations (will attract more investors to Cebu, said Juliet Banogon, Cebu Investment Promotions Center (CIPC) investment promotions officer.
She said most of the investors that they have briefed about Cebu’s industry situation usually make a decision to invest and operate within three to six months.
“So we have to be ready when they are here,” Banogon told Sun.Star Cebu in a phone interview.
Banogon also confirmed that aside from the usual Japanese and American investors, there is also a Korean group that initially showed interest in putting up investments in the Cebu City.
The Koreans want to invest in the IT industry, as well as in power generation, medical tourism and food processing. Call centers with operations in Luzon are also planning to expand its operations in Cebu.
IT parks
CIPC also refer investors to the Peza when they inquire about tax incentives that they can avail themselves of in special economic zones.
Based on a 2007 listing in Peza’s website, IT buildings located in the cities of Cebu and Mandaue provide a combined space of 154,111.81 square meters.
Aside from these, more space and land are available at an IT park in Cebu City.
The Cebu Property Ventures Development Corp. (CPVDC) said that at the Asiatown IT Park in Lahug, Cebu City six major buildings will be developed within the next two years to answer the needs of the growing information and communications technology (ICT) sector and BPO industry.
Of the six, four buildings, whose construction are ongoing, provide a combined gross floor area of more than 71,000 square meters. The four building are set to be completed by the third quarter of this year.
These four buildings are Skyrise 2, which will have 11 floors; TG Tower with 15 floors; i3 with 17 floors; and the 12-floor eBloc Tower, which was unveiled in November last year.
A number of real estate developers outside special economic areas, on the other hand, have registered their buildings with Peza to attract investors from the IT and BPO industry.
According to the PEZA website, it only takes a minimum of 2,000 square meters of building space to apply for a Peza registration.
Approved
The Peza has already approved the registration of 23 IT buildings in Cebu, but 17 of these structures have yet to be proclaimed.
Under Peza rules and regulations, registration applicants have to be proclaimed by the secretary of the Department of Trade and Industry before their buildings can enjoy the incentives extended to a Peza-registered firm.
Meanwhile, the CPVDC said that aside from office spaces, the new buildings that are being developed at the Asiatown IT Park will also house retail shops, entertainment bars, additional 24/7 food shops and restaurants.
The retail complex at the Asiatown IT Park, which was formerly known as “The Village,” will soft open by the third quarter of 2008. It will initially house 15 tenants.
The P60-million retail complex will have two floors with 1,860 square meters of total leasable area. The retail outlets at the complex will operate for 24 hours for seven days a week.
“It will support the requirements of the IT Park,” said Francis Monera, Cebu Holdings Inc. (CHI) president.
He added that this move by CHI, along with its subsidiary CPVDC, is in response to the growing demand for more commercial and entertainment centers in Cebu.
“Cebu has a very dynamic economy. The retail and entertainment businesses are very promising,” Monera said, citing the increasing number of overseas Filipino workers (OFWs), BPO workers and tourists.
More buildings are also being built at the 60-hectare Cebu Business Park, Monera said. He identified the future structures as those of Lexmark Research and Development Corp., Rizal Commercial Banking Corp., Creativo, China Bank, and Tower Palace. (with report from MMM)
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