July 21, 2014 9:05 pm [ manilatimes.net ]
by Madelaine B. Miraflor
Property developer Ortigas & Company is set to launch next quarter a mall development in its 10-hec–tare mixed use complex Capital Commons in Pasig City.
In a statement, the company said the retail mall will be named Estancia, a project that is expected to further boost the company’s recurring revenues.
The new mall is planned to have 18,000 square meters of space dedicated to retailers, fashion stores, restaurants, and entertainment facilities.
Joey Santos, Ortigas & Co. deputy chief operating officer and general manager for the real estate division, said in an earlier interview that the Capitol Commons mall will add as much as P300 million to the company’s overall recurring revenues.
In terms of earnings, he said the group expects its profits from commercial space to grow by as much as P2 billion in 2015 because of this, together with its other ongoing retail projects.
Ortigas & Co. recently broke ground for its 64-storey residential tower called The Royalton, the first of the five towers to rise at Capital Commons. It also formalized its entry into the upscale real estate market with the launch of Imperium, the second tower to be built at its master-planned community.
“The trend today is vertical, space has become limited and there is greater emphasis on the need for great location and convenience,” Santos said in a statement on Monday.
“Filipinos are entering a new age of economic freedom, so more people are buying property. But along with that comes tougher competition. That is the reason why we constantly need to reinvent ourselves. We have to grow with the market and keep up with the trends,” he added.
In a bid to participate in the growing business process outsourcing (BPO) industry, the property developer also recently signed an agreement with the Integrated Bar of the Philippines for the lease of a 1,700-square meter property in Ortigas to build a 26-storey office tower.
For this year alone, 65,000 square meters of new leasable space are targeted to be added to the company’s portfolio, while its total commercial space is expected to increase by 30 percent from 200,000 square meters.
Ortigas & Co. is allocating a P4-billion capital expenditure for 2014. Breaking down the capex, Santos earlier said P1.5 billion would be used for the expansion of the Greenhills Shopping Center, while the remaining P2.5 billion would go into the development of The Royalton and Imperium projects.