PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

DoubleDragon issued pre-selling license for Davao hotel

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DOUBLEDRAGON Properties Corp. said on Friday that its hotel subsidiary has obtained a pre-selling license for a project in Ecoland, Matina, Davao City.

In a disclosure to the stock exchange, the company said its unit Hotel of Asia Inc.’s Hotel101-Davao will have 519 rooms, making it the biggest hotel in Mindanao.

It occupies 5,300 square meter site along Eco West Drive near SM City Davao.

Hotel101-Davao will have a convention center, business meeting facilities, infinity pool, fitness gym, an all-day dining restaurant and a commercial strip. It is now under construction and is set to be completed by the end of 2020.

“We envision Hotel101 to become the largest and most recognized hotel chain in the Philippines in service and value, while likewise significantly contributing to the recurring income of DoubleDragon, and at the same time providing the market with an investment backed by a condominium title,” DoubleDragon Chairman Edgar J. Sia II said in a statement.

He said the project is a prototype and has been well-received by the market.

He added that the company is ready to roll out the concept “in a big way across various strategic locations in prime tourist destinations and in major cities.”

This year, DoubleDragon is set to launch and start pre-selling four Hotel101s in Davao, Boracay, Bohol and Palawan. The unit inventory is valued at P12.21 billion, which the company targets to fully sell in the next two years.

Hotel101 is the flagship hotel brand of the listed company. It will make up majority of the 5,000 hotel rooms in its target portfolio by 2020.

Hotel101-Davao is the third such project to be launched by the company.

On Friday, DoubleDragon Properties fell 1.88% to close at P20.85. — Victor V. Saulon

SEC sets rules for forming one-person corporations

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THE Securities and Exchange Commission (SEC) has released on Friday draft guidelines listing documentary requirements for putting up a one-person corporation (OPC) and providing how ordinary stock corporations can be converted into OPCs.

“The provision for a one person corporation should encourage the formation of more businesses in the country by making it easier for entrepreneurs to start a limited liability company,” SEC Chairperson Emilio B. Aquino said in a press release.

He said the guidelines would benefit an economy where micro, small and medium enterprises comprise more than 99% of business establishments and generate around 63% of jobs.

The SEC also requested interested parties to submit their comments on the draft Guidelines on the Establishment of a One Person Corporation (OPC) and Guidelines on the Conversion of an Ordinary Stock Corporations into a One Person Corporation (OPC).

The concept of a corporation with a single stockholder was introduced by Republic Act No. 11232, otherwise known as the Revised Corporation Code of the Philippines, which took effect on Feb. 23.

Section 10 of the revised code paves the way for the creation of an OPC by removing the minimum number of incorporators that may organize a corporation. It also defined an OPC in Chapter III.

The draft guidelines reiterate that only a natural person, trust or estate may form an OPC. But it clarifies the incorporator should be a natural person of legal age.

The SEC said the “trust” does not refer to a trust entity but a subject being managed by a trustee. If the single stockholder is a trustee, administrator, executor, guardian, conservator, custodian or other person exercising fiduciary duties, proof of authority to act on behalf of the trust or estate must be submitted at the time of incorporation.

The draft guidelines also clarifies that non-bank financial institutions may not incorporate as OPC aside from banks, quasi-banks, pre-need, trust and insurance companies, public and publicly listed companies, and non-chartered government-owned and/or -controlled corporations.

A foreign natural person may put up an OPC, subject to the applicable constitutional and statutory restrictions on foreign participation in certain investment areas or activities.

To incorporate, an OPC needs to submit only its Articles of Incorporation, which sets forth among others a primary purpose, principal office address, term of existence, names and details of the single stockholder, the nominee and alternate nominee, and the authorized, subscribed and paid-up capital.

When the single stockholder assumes the position of the treasurer, an OPC must post a surety bond, computed based on its authorized capital stock and subject to renewal every two years, or as may be required, upon review of its annual financial statements.
At the minimum, an OPC with authorized capital stock of up to P250,000 will have to give a bond of P250,000. The bond shall be equal to the authorized capital stock when the latter breaches P5 million.
On the conversion to an OPC, only a domestic stock corporation may do so and the single stockholder may apply after acquiring all the outstanding capital stock of the corporation.

The process is the same as amending Articles of Incorporation to include the suffix “OPC” in the corporation’s name and remove any suffix indicating an ordinary stock corporation such as “corporation” and “incorporation.”

The corporation must also amend its Articles of Incorporation to reduce the number of directors, name a nominee and alternate nominee, and amend or remove provisions distinctive to ordinary stock corporations, among others.

The SEC will require a secretary’s certificate that the single stockholder acquired all outstanding shares in the corporation and has decided to convert the corporation to OPC, and for that purpose, has decided to amend the incorporation papers, repeal the by-laws of the corporation and appoint a nominee and alternate nominee for the OPC.

The secretary’s certificate should also state that all taxes and obligations in favor of the government has been settled, and that the corporation or any of its stockholder, director, or officer is not involved in any intra-corporate dispute.

The commission will also require proof acquisition of all the outstanding shares, affidavit of acceptance by the nominee and alternate nominee, name reservation, monitoring clearance of the ordinary stock corporation, and undertaking to change corporate name by the single stockholder.

The conversion of an ordinary stock corporation into an OPC takes effect upon approval of the Amended Articles of Incorporation through the issuance of a Certificate of Filing of Conversion to One Person Corporation.

Upon approval of the conversion, the OPC will retain its SEC company registration number. It will also maintain legal responsibility for the ordinary stock corporation’s outstanding liabilities and obligations as of the date of approval of the conversion. — V. V. Saulon

Megaworld and BCDA to jointly manage Bonifacio Capital District

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By Arra B. Francia, Reporter

MEGAWORLD CORP. has partnered with the Bases Conversion and Development Authority (BCDA) for the property management of the 160-hectare Bonifacio Capital District (BCD) in Taguig City.

The listed property developer signed on Thursday a memorandum of agreement (MoA) with BCDA for the new district on the southern part of Fort Bonifacio, which will encompass Megaworld’s existing developments such as the 54.3-hectare McKinley Hill and the 34.5-hectare McKinley West.

BCD will also include properties owned by BCDA, namely the 26-hectare Philippine Navy Village, the 33.1-hectare Bonifacio South Pointe in partnership with the SM Group, the 10.1-hectare Consular property beside McKinley West, and a one-hectare lot.

Under the agreement, Megaworld and BCDA will create a Policy Review Board (PRB) that will set the policies and restrictions for the execution of BCD’s masterplan.

“The PRB is one of the most important, if not the most important body of any development,” BCDA President and Chief Executive Officer Vince B. Dizon said in a press briefing after the MoA signing in Taguig on Thursday.

“It is in charge of ensuring the right execution of the development. It’s in charge of the urban designs, ensuring that each and every locator in the property follows these guidelines, and is in charge of the short, medium, and long-term development of the entire property,” Mr. Dizon explained.

Mr. Dizon noted how the absence of a masterplan in most cities in the Philippines has given rise to “not so ideal conditions” for businesses, as well as for the people residing and working in those cities.

Megaworld Senior Vice President and Chief Strategy Officer Kevin Andrew L. Tan said the execution of the masterplan will include traffic management, landscaping of major roads, and security management, among others.

“In the next five years, after completing the road developments, utilities network and the subway project, we will be focused on traffic management, which includes development of bike lanes and pedestrian networks as well as deployment of traffic marshals,” Mr. Tan said in the same event.

The company will also expand the CCTV monitoring within the district, which will be incorporated into its Central Command Center in McKinley Hill.

Megaworld is currently developing commercial, residential, office, and institutional properties in McKinley Hill and McKinley West spanning about 1.26 million square meters (sq.m.) in gross floor area (GFA). The company expects to finish another 2.1 million sq.m. in GFA within the next 10 years from proposed mixed-use developments on undeveloped lots in the district.

BCD will also house several government institutions in the future, namely the Senate of the Philippines, the Supreme Court, and the Court of Appeals.

The company also noted that BCD will house one of the proposed stations, Lawton East Station, which will be part of the Metro Manila Subway to be completed by 2025.

Megaworld is the property arm of tycoon Andrew L. Tan’s Alliance Global Group, Inc., whose investments also include liquor, gaming, and quick-serviced restaurants.

Shares in Megaworld climbed 2.22% or 12 centavos to close at P5.53 each at the stock exchange on Thursday.

Megaworld gets Iloilo City council nod on transport hub proposal

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A DIGITAL rendition of the planned transport hub within the Iloilo Business Park.
THE ILOILO City council has approved Megaworld Corp.’s proposal to build and operate a transport hub within its 72-hectare Iloilo Business Park in the Mandurriao district. In an ordinance approved last March 5, the Sanguniang Panlungsod said the transport hub shall be used exclusively for vans and shuttle buses with franchises issued by the Land Transportation Franchising and Regulatory Board (LTFRB). 

“The transport hub shall be used exclusively and limitedly only to UV Express, Tourist and Chartered Vans and Bus and Shuttle Buses with a valid and existing franchise issued by LTFRB,” Councilor Plaridel C. Nava, chairman of the council’s transportation committee, said. 

Public utility jeepneys that cover the city loop route and taxis, meanwhile, shall be allowed to pick up and deliver passengers at the parking space within the transport hub without a fee from Megaworld. Mr. Nava added that the “Megaworld Transport Hub” will serve as the pilot terminal for the modern e-jeepneys in the city. 

“It is part of the city government’s effort to serve as pilot terminal for the modernized jeepneys,” he said. During the public hearing prior to the project approval, Mr. Nava said Megaworld representatives stressed the need to provide transportation service for business processes outsourcing (BPO) employees within the Iloilo Business Park.

“According to Megaworld, there are about 25,000 BPO employees from the nearby municipalities and provinces that need transportation round the clock, excluding other workers within the vicinity of the Iloilo Business Park that may reach up to 30,000,” Mr. Nava said. Iloilo City’s Public Safety and Transportation Management Office head Jeck Conlu, in a separate interview, said the planned transport hub is a welcome development for the city. 

“The proposal is economically beneficial because we can provide means of transportation (for the BPO workers)… Finally we can also boast a modern terminal like Manila” Mr. Conlu said. — Emme Rose S. Santiagudo

DoubleDragon to build warehouse complex in Davao

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THE industrial leasing unit of DoubleDragon Properties Corp. is partnering with Davao City’s Alsons Group for its fourth warehouse complex in the country. 

In a statement issued Tuesday, CentralHub Industrial Centers, Inc said it has signed a joint venture agreement with Alsons Development & Investments Corp. for the development of an industrial complex on an 8.2-hectare property in Davao City. 

CentralHub will own 70% of the venture, while Alsons will have a 30% stake.

Located along the Daang Maharlika Highway, CentralHub-Davao will offer 40,392 square meters (sq.m.) of leasable industrial warehouse space. The property is eight kilometers away from the Davao International Container Terminal, and 17 kilometers away from the Francisco Bangoy International Airport in Davao City. 

DoubleDragon Chief Investment Officer Marriana H. Yulo said there has been rising demand for warehouse space due to the government’s increased spending on infrastructure projects.
“The continuous investment in infrastructure projects are compelling e-commerce and consumer companies to enter new markets which has become the catalyst for the strong demand in industrial space,” Ms. Yulo was quoted as saying in a statement.

CentralHub-Davao marks the company’s first project in Mindanao and its fourth in the country. It is currently building CentralHub-Danao in Cebu, CentralHub-Iloilo, and CentralHub-Tarlac. These projects cover 23.3 hectares with 121,626 sq.m. of leasable industrial warehouse space. 

DoubleDragon aims to have at least 100,000 sq.m. in warehouse leasable space completed by 2020. These properties will house modern standardized multi-use warehouses that can be used as commissaries, cold storage, light manufacturing, and logistics distribution centers.

“The company has been seriously focused on building up its portfolio of prime hard assets that can generate high double-digit rental yields and deploy capital only on select prime properties that can appreciate five to 10 folds in the next five to 10 years,” DoubleDragon Chairman Edgar J. Sia II said in a statement.

CentralHub is one of DoubleDragon’s so-called four pillars of growth, with the others being its community malls unit called CityMalls, the office segment, and the hotel group. The four segments are seen to deliver 1.2 million sq.m. of leasable space by next year. 

DoubleDragon booked an attributable profit of P966.02 million in the first nine months of 2018, 19% higher year on year, following a 16% uptick in gross revenues to P4.72 billion.

Shares in DoubleDragon fell 2.88% or 60 centavos to close at P20.25 each at the stock exchange on Tuesday. — Arra B. Francia

Ayala Land to issue P8 billion worth of bonds

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Ayala Land Inc. is planning to expand its Seda Hotel chain around the country. — CRAG
By Arra B. Francia, Reporter

AYALA LAND, Inc (ALI) will be issuing P8 billion worth of fixed rate bonds this year to partially finance its hotel, mall, and office projects. 

The bonds will have a seven-year tenor, and will be the first issuance from its P50-billion debt securities program (DSP) registered with the Securities and Exchange Commission.

The listed property developer will use the funds raised from the bonds for several projects lined up for the year, including Seda Hotel in Manila Bay, Seda Bonifacio Global City Expansion, Arca South and the Taguig Integrated Terminal Exchange in Taguig, as well as Vertis North Corporate Center Tower 3 in Quezon City.

The fresh capital will also be used to finance projects in the provinces, namely Bacolod Capitol Corporate Center and Capitol Central Mall in Bacolod, and Ayala Malls Central Bloc in Cebu. 

This is the second time ALI made use of the SEC’s debt securities program. The first registration also amounted to P50 billion and was issued in a span of three years from March 2016 to October 2018. 

Local debt watcher Philippine Ratings Services Corp. (PhilRatings) assigned the bonds a PRS Aaa rating, the highest in its credit rating scale. This indicates that the company has an “extremely strong” capacity to meet its financial commitments.

The rating also carries a stable outlook, which means it is unlikely to change in the next 12 months.

PhilRatings took into account ALI’s well-diversified portfolio, healthy outlook for the economy and real estate industry, growing profitability, and sound capitalization in coming up with the rating.

“Prospects for the real estate sector continue to remain healthy anchored on stable fundamentals, a growing economy, remittances from overseas Filipinos, resilient consumption spending in retail, the steady growth in tourist arrivals and continued demand from the Business Process Outsourcing sector,” according to PhilRatings.

The debt watcher noted that ALI has two retail bond issuances that will mature this year, namely fixed rate bonds worth P9.35 billion due in April, and P2.98-billion HomeStart B bonds due in October.

The fund-raising activity will support ALI’s plan to spend P130 billion in capital expenditures this year, 18% higher than its spending in 2018, as it continues to expand its residential, office, commercial, and retail developments. The rest of the capex budget will be funded through bank debts.

The company also plans to launch P130 billion worth of projects for the year, including two estates in Tarlac and Batangas.

ALI booked a net income of P29.2 billion in 2018, 16% higher year on year as revenues also rose 17% to P166.25 billion.

Shares in ALI slipped 0.58% or 25 centavos to close at P42.90 each at the stock exchange on Tuesday.

New Cebu office project attracts BPO

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Johndorf Tower
Johndorf Ventures Corp. expects Johndorf Tower within Cebu Business Park to be completed in two years. -- COMPANY HANDOUT
BUSINESS PROCESS outsourcing (BPO) companies continue to flock to Cebu City, particularly new projects such as the 21-storey Johndorf Tower.

According to Leechiu Property Consultants (LPC) executive director Phillip Anonuevo, Cebu City is the second most preferred destination of BPO, after Metro Manila, due to its labor force, infrastructure, and independent electric network.

“This works well for BPO firms implementing redundancy plans,” Mr. Anonuevo said in a statement.

LPC also noted Cebu accounted for 8% of the country’s total office demand of about 1.5 million sq.m. in 2018.

Johndorf Ventures Corp. (JVC) is hoping to take advantage of Cebu City’s booming office market with its first office project — the Johndorf Tower within Cebu Business Park.

The developer started construction of Johndorf Tower last February, and expects to complete it within two years’ time.

Johndorf Tower has a gross leasable area of 17,860 square meters (sq.m.) and offers large floor plates that can cater to the needs of BPO firms.

“It is one of the few new projects in Cebu City that complies with the Fire Bureau’s new building density ratio of 1 pax:4.6 sq.m.,” the company noted.

Johndorf Tower also aims to secure the Leadership in Energy and Environmental Design (LEED) silver certification.

JVC is a residential developer with townhouses and condominiums across the Visayas and Mindanao region. — V.M.P.Galang

Avida’s Makati project targets ‘younger’ and ‘wiser’ millennials

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Avida Towers Makati
Avida Towers Makati Southpoint is a three-tower residential project in Makati City.
AVIDA LAND Corp. is targeting young professionals and millennials with its latest project Makati Southpoint.

Ayala Land Inc.’s mid-range brand recently launched Avida Towers (AT) Makati Southpoint — a three-tower residential condominium development located on an 11,000 square meter (sq.m.) lot along Chino Roces Avenue in Barangay Bangkal.

“Our target market is the younger and the wiser,” Avida Land Business Area Head for Metro South Properties Reginald D. Alabe said during a media briefing on Feb. 27.

“We conducted a study with McCann and they found out that today 59% are below 30 years old, and the median age today is 23. Majority of the workforce is still below 30 years old. The same study found out that the workforce of the Philippines, major income earners are between the ages of 25 and 39,” he added.

Jonathan Fabricante, Avida Land Head of Innovation and Design Group, noted these young, working millennials are now looking to own their own homes, as part of their transition into adulthood.

“Millennials when they buy units, they realize they’re mostly at work… In the end, they realize they just need a space that is just right size, enough to sleep comfortably, with a good address, near places of work, malls, hospitals, entertainment areas, very walkable and easy to drive to,” he said during the same briefing.

To cater to the millennial market, Makati Southpoint offers units that are “just right” for their needs.

“For a mid-affordable development, it’s the right size with sensible amenities… We are designing it to complement the lifestyle of the millennials — fast-paced, round-the-clock lifestyle of young professionals,” Mr. Fabricante said.

The first tower of Makati Southpoint will have 924 residential units, 247 parking units and 10 retail units. The project will have a grand central lobby for all three towers.

For the first tower, unit sizes range from 23.3 square meters (sq.m.) for studio and junior one-bedroom to 38.2 sq.m. for one-bedroom. Prices start at P4.4 million for studio to P8.5 million for one-bedroom.

Mr. Fabricante said the units at Makati Southpoint are efficiently planned and well-thought out. Model units are available for viewing at the Avida Land showroom on the second floor of Glorietta 4 in Makati City.

Makati Southpoint’s amenities include a clubhouse, indoor gym, children’s play area, swimming pool, kiddie pool, a jogging path and a linear park.

“(Makati Southpoint) has collaborative spaces — a huge area with a lot of seats and tables where people can do group study, meetings. It’s a conducive place to hang out with friends and family, an extension of their living space,” Mr. Fabricante said.

The development also incorporates sustainable design features, such as rainwater harvesting, and sensor-controlled hallway and podium parking lights. Units will have water-efficient toilet fixtures, LED lights, and low solar heat gain glass windows.

Mr. Alabe noted Makati Southpoint’s location is a main selling point as it is “within three kilometers of eight major office buildings, seven schools, six commercial areas, six spaces for arts and culture, five hospitals and places of worship.” Aside from Makati central business district, it is easily accessible from EDSA, South Luzon Expressway, Pasay and Manila. — Cathy Rose A. Garcia

DMWAI aims for completion of mixed-use project by 2021

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DMWAI Parqal
D.M. Wenceslao & Associates, Inc. is constructing a mixed-use development Parqal in Parañaque City.
D.M. WENCESLAO & Associates, Inc. (DMWAI) on Wednesday started construction of its mixed-use development, Parqal, within its flagship Aseana City project in Parañaque City, targeting its completion by 2021.

“We’re building office buildings, condos, retail, but this is one of the first developments, at least in this area, that’s committed to public space,” Delfin Angelo C. Wenceslao, chief executive officer of DMWAI, said during the groundbreaking ceremony for Parqal.

Parqal, whose name is a combination of “park” and “kalye,” is located on a five-hectare property occupying two blocks between Diokno Avenue and Macapagal Boulevard. It will have a gross floor area of 78,000 square meters (sq.m.) spread across nine independent four-storey buildings, which will be devoted to office and retail space.

“As you look around all the developments, not just in the Philippines, but in Asia, globally, livability is one of the major themes. We’re committed to this project not just because of the commercial value of it, but more so because of… how it promotes walkability, and connectivity in our urban developments,” Mr. Wenceslao said.

DMWAI will implement sustainable building practices at Parqal, as it aims to secure four to five star rating Building for Ecologically Responsive Design Excellence (BERDE) certification from the Philippine Green Building Council.

“What we’re building here is a mixed-use experience that will be located in the greenway of Aseana City. Originally, the concept here is it will provide green space, a lot of public space for the residents, office workers the visitors of Aseana City, but of course we want to take advantage of the area by providing retail offerings, as well as other commercial activities,” Julius M. Guevara, vice president for corporate planning of DMW, told reporters after the ceremony.

More than half or 60% of the whole area is dedicated to lush green spaces, and recreational facilities.

The open areas will have canopies made up of ethylene tetrafluoroethylene (ETFE), which would allow sunlight to still penetrate the roof but reduce heat. The company said this will still allow trees to grow even under the roof.

Mr. Guevara said Parqal is expected to attract families living in nearby areas such as Pasay, Manila and Cavite, as well as those occupying residential condominiums in Aseana City. Its proximity to the airport also makes it attractive for tourists.

“We would want to have a mix that would be attractive to those that would visit Aseana City and one thing that we would want is that we’re located in the Entertainment City… We would want to round that off by providing entertainment that would draw the family to visit the area,” he said.

“We’re very close to the airport. That would attract international travelers in the area and we want to provide a retail mix that would address their retail needs,” he added.

Parqal is just a stone’s throw away from DMWAI’s flagship Aseana City, which features projects such as Aseana One, Aseana Two, Aseana Three, and MidPark Towers.

“If you take a look at it holistically you could the entire vision for Aseana where you have a lot of high grade office spaces, premium residential condominiums, complemented by a very upscale retail and mixed-use experience on the very center,” Mr. Guevara noted.

Earlier this year, DMWAI said it is allotting P4 billion for capital expenditures after seeing a double-digit growth in 2018 due to strong demand for properties in the Bay Area. — Vincent Mariel P. Galang

Megaworld to spend P20B for township

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THE 24-HECTARE Highland City will have residential condominiums, mixed-use towers, malls, a church, and a park. — COURTESY OF MEGAWORLD CORP.
By Arra B. Francia, Reporter

MEGAWORLD CORP. will be spending P20 billion over the next 10 years to develop its newest township in Cainta, Rizal, as the property giant targets to have a total of 30 townships under its portfolio in the next two years.

Tycoon Andrew L. Tan’s listed real estate firm unveiled on Monday Empire East Highland City, a mixed-use estate to be developed in partnership with 82%-owned subsidiary Empire East Land Holdings, Inc. (ELI).

Located along F. Felix Avenue in Cainta, Highland City will cover 24 hectares of land that previously housed a steel mill factory before it was acquired by the Megaworld group. It will offer a mix of residential condominium, mixed-use towers, a lifestyle mall, retail areas, a church, and a park.

The first phase of development will include the Highland Mall, which is set to have a gross floor area of 58,000 square meters (sq.m.). Megaworld targets to open the mall by the end of 2020.

Meanwhile, ELI will build 38 residential towers in the township catering to the mid-income market, banking on the strong demand for condominium units in Cainta. 

“We saw that there is still a big demand for residential products in this area. Most of the properties here have been developed into horizontal developments already, so with the lack of land in the area, we saw that there is no other way but to go vertical,” Megaworld Chief Strategy Officer Kevin Andrew L. Tan said in a press briefing in Eastwood City on Monday.

Mr. Tan noted that Cainta has a population of about 400,000 people, adding that a lot of remittances from overseas Filipino workers are spent in the area.

The township will also have Highland Park, an 8,000-sq.m. green and open park that will house retail areas and a 500-seating capacity church. Land development for the township will start in the second quarter of this year.

Highland City is Megaworld’s 24th township, following the launch of The Hamptons Caliraya in Cavinti, Laguna last year.

“We have plans for more townships this year. I really think we can take it up to 30 townships in the next two years,” Mr. Tan said, although declining to give more details on the locations of the next townships.

Mr. Tan noted that public transport and infrastructure projects are now a top consideration for when they build townships.

“That’s why we are evolving a lot of our townships to be able to accommodate that,” Mr. Tan said, citing how Megaworld’s Uptown Bonifacio development in Taguig will be the first township that is mass transit-oriented. The company has proposed to build a two-kilometer monorail called Skytrain that aims to connect Uptown Bonifacio to MRT-3 Guadalupe.

Shares in Megaworld jumped 1.65% or nine centavos to close at P5.54 each at the stock exchange on Monday.

Registry of Deeds – Manila shall temporarily relocate at Ground Floor, Rivergreen Residences, Sta. Ana, Manila

Effective Monday, 04 March 2019, the Registry of Deeds – Manila shall temporarily relocate at Ground Floor, Rivergreen Residences, Sta. Ana, Manila due to the Renovation Project of the City Hall of Manila.

We apologize for any inconvenience.

Thank you.

For info call or text @

Registrar of Deeds
City of Manila


DMCI Holdings sets P31-billion capex this year

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DMCI Holdings, Inc. is ramping up its capital expenditures (capex) to P31 billion this year, as it looks to support its property unit’s aggressive expansion in the following years.

The listed engineering and construction conglomerate is raising capital spending by 15% from the P27 billion it spent in 2018.

DMCI Holdings Chief Finance Officer Herbert M. Consunji said in a press briefing last week that bulk of the capex will go to DMCI Project Developers, Inc., which operates under the name DMCI Homes, at P18 billion.

Semirara Mining & Power Corp. (SMPC) cornered P10 billion, while off-grid energy developer DMCI Power Corp. will receive P1.3 billion, while the rest will go to its other units.
The Consunji-led firm’s other businesses include construction firm D.M. Consunji, Inc. and DMCI Mining Cop.

The allocation excludes the spending for DMCI Holdings affiliate, Maynilad Water Services, Inc.

DMCI Homes is set to launch a record number of project launches this year. Its properties are mostly mid- to high-rise condominium developments in Metro Manila, including Prisma and Fairlane Residences in Pasig City, Calathea Place and The Atherton in Parañaque City, as well as The Celandine and Infina Towers in Quezon City.

“For this year, our target reservation sales is P38 billion,” DMCI Homes Project Development Manager April B. Bernal said in a press briefing in Makati last week.

The company’s projects typically cater to the middle-class and upscale Filipino market.

In 2018, DMCI Homes delivered a net income of P3.9 billion, 9% higher year on year due to a one-time gain from the sale of land in Quezon City worth P715 million. Without this, its core profit fell by 11% due to the higher cost of raw materials, as well as the adoption of a new accounting standard that changed the recording of broker’s commissions.

Overall, DMCI Holdings saw its consolidated net income drop by 2% in 2018, as SMPC suffered a nearly eight-month shutdown in Unit 1 of Southwest Luzon Power Generation Corp.

Despite SMPC’s weakness, it remained to be the top contributor to DMCI Holding’s earnings last year at P6.8 billion, albeit lower than the P8 billion it generated in 2017.

Meanwhile, DM Consunji’s net income contribution to the parent rose 16% to P1.2 billion, due to the near completion of various projects. DMCI Power’s net earnings also grew 30% to P465 million, while DMCI Mining’s net income inched up 4% to P117 million due to higher shipment volumes for the year.

The company said it expects to have a better year in 2019.

Shares in DMCI Holdings were down by four centavos or 0.34% to close at P11.56 each at the stock exchange on Friday. — Arra B. Francia

Megaworld wants to expand WeWork facilities to its townships

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WEWORK occupies two levels in Uptown Tower Three, Uptown Bonifacio in Taguig City. — COMPANY HANDOUT
By Arra B. Francia, Reporter

MEGAWORLD Corp. plans to bring New York-based workspace operator WeWork into its townships in the country, where it could cater to the needs of start-ups, micro, small, and medium enterprises, as well as freelancers.

The listed property developer said they hope to provide “as many locations” as they can to WeWork, after it opened its first location in the Philippines within Megaworld’s Uptown Bonifacio estate in Taguig City last month.

WeWork occupies two levels in Uptown Tower Three with a gross floor area of 4,081 square meters (sq.m.), and can accommodate up to 800 members. The co-working space offers desks, offices, and conference rooms to its members, and amenities such as an indoor garden and a karaoke room.

Megaworld Senior Vice-President Jericho P. Go said they hope to bring WeWork to other areas in Metro Manila and the provinces, as part of their partnership.

“In our various townships, we hope to bring them there also. Their strategy is they want to be in the heart of the city,” Mr. Go said in a press briefing in Taguig City on Wednesday.

Mr. Go cited Eastwood City in Quezon City, and other Taguig townships such as McKinley Hill and McKinley West as possible locations for WeWork facilities.

“Eastwood is very interesting because that’s north of Makati, that is a very prime location. There are over 80,000 BPO and traditional office employees already working in Eastwood so they can very much benefit from that huge pool of untapped market as far as WeWork is concerned,” Mr. Go explained.

Should WeWork be interested to expand to the provinces, Mr. Go said they can offer office spaces in Iloilo Business Park in Mandurriao, Iloilo, and in Cebu.

“We’re nearing 100,000 sq.m. of office space there (Iloilo Business Park), employing anywhere from 20,000 to 30,000 employees from BPO to traditional workers, so these are all interesting sites for them to take a presence in,” Mr. Go said.

WeWork currently has 287 locations in 77 cities in the United States, Netherlands, Chile, Canada, Germany, Singapore, and South Korea, among others. The Philippines is its fourth location is Southeast Asia, following Singapore, Indonesia, and Vietnam.

Its second site will have 680 desks at RCBC Plaza, Makati City, to be opened in the second quarter of 2019.

Megaworld’s partnership with WeWork supports its goal to lease out 1.5 million sq.m. of office space by 2020, the same time it expects to hit a rental income of P20 billion.

The property giant ended 2018 with 1.2 million sq.m. of office space, and is set to add about 300,000 sq.m. in the next two years.

Shares in Megaworld dropped 0.94% or five centavos to close at P5.26 each at the stock exchange on Wednesday.

Aspire Corporate Plaza to be completed by 2020

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By Francis Anthony T. Valentin Special Features Assistant Editor

GOLDEN BAY Fresh Landholdings, Inc. is looking to complete the construction of Aspire Corporate Plaza, its P2-billion office building in the Pasay City section of the Manila Bay Area, by 2020, earlier than initially planned.

The project was originally slated for completion in early 2021, Jardin Brian B. Wong, chief operating officer of Golden Bay, said at a press briefing on Feb. 21.

“We started developing the property even though we didn’t have any sale. That represents our confidence in the project,” he said.

Touted as the “first and only property in the Macapagal Bay Area to sell office spaces,” Aspire Corporate Plaza is aimed primarily at small and medium-sized enterprises, especially those in places like Binondo in Manila and those that prefer to own an office space rather than only leasing it.

“We offer them a chance to own their units in the booming Bay Area,” Mr. Wong said. “In the years to come, more and more people will see the benefits of relocating here. They’ll see the benefits of having relocated to an area closest to the airports and closest to key expressways.”

Golden Bay enlisted several firms, including Megawide Construction Corp., Sta. Elena Construction and Development Corp., ASYA Design Partner and Meinhardt Philippines, Inc., to put together the structure on a 3,500 square meter-property behind its food business, Golden Bay Fresh Seafood Restaurant, on Diosdado Macapagal Boulevard.

“Once we asked them to go full blast at an earlier time, kinaya nila,” Mr. Wong said.

Construction of the 10-story structure began early last year. Mr. Wong said the topping off would be held this year and the turning over of the units to the owners in 2020.

Part of the reason for fast tracking of the building is that their company is going to transfer there from its office in Binondo. “We personally bought a handful of units,” Mr. Wong said.

Aspire units have been selling briskly. “We sold already around 40 [units],” Mr. Wong told BusinessWorld on the sidelines of the briefing last Thursday. Their buyers include manufacturing, logistics and construction companies. An office unit starts at around P250,000 per square meter.

Golden Bay conducted a two-day open house earlier this month to generate sales as well as buzz for its office building that will feature a sky garden, six high-speed passenger elevators and a parking space for 261 vehicles. Another one is scheduled to take place on March 9 and 10.

Pag-IBIG financing for Amaia project

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Amaia Scapes Capas

AMAIA LAND Corp. is offering flexible payment options, including Pag-IBIG financing, to prospective homeowners at Amaia Scapes Capas in Tarlac.

Located along the MacArthur Highway in Brgy. Estrada, Amaia Scapes Capas is currently has 114 available units, ranging from Twin Homes and Bungalow Pods to Twin Pods and Multi Pods. Lots are also available.

Homeowners can make a minimum 5% downpayment, spread over six months, with the 95% balance to be settled through Pag-IBIG financing (based on prevailing interest rates).

To avail of Pag-IBIG financing, locally employed applicants must provide a certificate of Employment and compensation (original and notarized once for application); latest one-month pay slip; most recent Income Tax Returns; latest proof of billing address; birth certificate/marriage contracts; 2 valid IDs (spouses); Pag-IBIG ID/Pag-IBIG Loyalty Card/Members Data Form (online application); and 3 pieces of 1×1 ID photos.

For overseas Filipino workers, applicants have to present a valid employment contract; latest one-month pay slip; valid passport; valid ID of SPA; Special Power of Attorney (Pag-IBIG format); latest proof of billing address; birth certificate/marriage contracts; Pag-IBIG ID/Pag-IBIG Loyalty Card/Members Data Form (online application); and 3 pieces 1×1 ID photos.

KMC Solutions opens 36th co-working space in Alabang

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KMC-Solutions Griffinstone Reception
KMC Solutions launched its new facility in Filinvest City, Alabang.
By Vincent Mariel P. Galang Reporter

KMC SOLUTIONS launched its 36th co-working and office space in Filinvest City in Alabang, Muntinlupa City.

“This particular area, Filinvest City, is future ready. It has very good road infrastructure. It has transportation hubs that are very near here. The South Station is just less than a kilometer away, and then… Festival Mall, which we all know, has a lot of transportation options, as well,” Tracy G. Ignacio, chief operating officer of KMC Solutions said during the launch on Feb. 21.

While the area is booming, Ms. Ignacio noted Filinvest City also has space for future development and growth.

“The vacancy in this particular area is very low. All offices that got built got sold. Really, it’s a booming location,” she added.

Ms. Ignacio cited a study by KMC Savills, which found that vacancy in the area has remained below 5% and is expected to remain at the same level in the next two years.
KMC currently occupies one floor in the One Griffinstone building in Filinvest City, a township development by the Filinvest Development Corp. (FDC). The 1,600-square meter (sq.m.) facility can accommodate around 270 workstations. It also features private offices that can accommodate up to a hundred people depending on the set up.

All private offices have floor to ceiling windows, and have a manager’s office that can be converted into a meeting room. The offices have a community area, where members can engage with each other.

Other amenities include a pantry, conference rooms, phone booths, clinic and lactation room, and a training room for health activities like yoga and pilates.

“We really want to make our facilities where… if had you to work on a Saturday or a Sunday, should you work from home? Should you work from a coffee shop or you can come back to a KMC Office? We want to make it that attractive,” Gregory Kittelson, chairman and co-founder of KMC Solutions, said during the launch.

The One Griffinstone building is also Philippine Economic Zone Authority accredited, which makes it a good location for foreign companies. It is currently at its pre-leasing, which is now at 20%.

KMC Solutions officials noted Muntinlupa is the ninth city where the company has a presence in, after Makati City, Quezon City, Pasay City, Mandaluyong City, Taguig City, Pasig City, Iloilo City, and Cebu City.

In the first two months of 2019, KMC Solutions launched five floors, including the Alabang Site, while two are in Ortigas and two are in Makati.

“This year will be a very big year for KMC as we expand aggressively. From now until the end of the year, we’re projecting to have 4,000 more seats, and that’s about 20,000 sq.m. of office spaces across different places because again we want a KMC near you,” Ms. Ignacio noted.

Currently, the co-working space provider has 57,151 sq.m. of space or 10,367 seats across different cities. By the end of the year, it targets to add about 20,185 sq.m. of space or about 3,863 seats to its portfolio. This should bring its total footprint to about 77,236 sq.m. or more than 14,229 seats.

“These are a lot of numbers, but at the end of the day if we look at these numbers… that means 14,000 jobs. It generates 14,000 jobs in different areas of the Philippines, so that’s what we try to contribute. Not just as a company that is profit relevant, but also as a contributor to the entire economic growth of the Philippines, as well,” Ms. Ignacio said.

Office vacancy rates to reach 7.1% this year

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Makati offices skyline
Office rental rates are expected to rise this year, due to continued demand from the outsourcing industry.
By Arra B. Francia Reporter

AVERAGE VACANCY rate for office spaces in Metro Manila will likely hit 7.1% this year as more than 800,000 square meters (sq.m.) of new office supply is seen to enter the market in 2019, according to real estate services firm KMC Savills.

“Vacancy could hit 7.1% in the short term, largely caused by Quezon City,” KMC Savills Managing Director Michael McCullough said during the company’s fourth-quarter office briefing in Taguig City last week.

Quezon City currently has the highest vacancy rate among Metro Manila office markets at 16.4% as of the end of the fourth quarter of 2018, compared to 8.7% during the third quarter. This could further rise as it has 92,048 sq.m. of office spaces in the development pipeline until 2022.

KMC Savills Research and Consultancy Manager Fredrick H. Rara said the largest supply pressure will come this year, before eventually easing in 2020. The company said 746,900 sq.m. of new Grade A office supply were completed in 2018, while only less than 600,000 sq.m. are set to be finished in 2020.

With the high vacancy rate in Quezon City, rents also declined by 0.2% to an average of P747.4 per sq.m. every month.

“But in the long term, our data shows that vacancy will be manageable. Anything less than 10% is very good,” Mr. McCullough said.

While recording a two percent vacancy rate by the end of the fourth quarter, Ortigas Center is seen to post double-digit vacancy rates this year as new supply will come in from the Podium West Tower in the first quarter.

“Although elevated vacancies typically pull rental growth down, improvement in the quality of the overall stock in Ortigas Center should correct the rental disparity between the established central business districts,” according to KMC Savills.

Recording the second-highest vacancy rate by the end of the fourth quarter was Bonifacio Global City, following the addition of 26,000 sq.m. from Century Properties Group, Inc.’s Asian Century Tower.

The higher vacancy rate, however, did not temper the rise in rental rates at 5% year on year, averaging at P972.8 per sq.m. due to the sustained demand from the outsourcing and offshoring industry.

The Bay Area recorded the lowest vacancy rate at the end of the fourth quarter at only 0.6%, which KMC Savills attributed to the steady demand from Philippine offshore gaming operators.

“The Bay Area is a really interesting story because of the entertainment district, there are three casinos currently fully functioning and a fourth one under construction. I think it’s set to exceed Makati’s Grade A office in the coming years, and given how close it is to the airport and infrastructure projects, it will really be a force to be reckoned with,” Mr. McCullough said.

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