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

Building devoted to co-working space opens in Makati

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INTERNATIONAL Workplace Group (IWG) recently opened Spaces in Arnaiz Makati, which it described as the country’s first co-working space that occupies an entire building.

“About this location, obviously we got a whole building. It’s very unique to get a whole building. To be at the ground floor gives visibility and accessibility. This is the essence of what co-working should look like,” Lars Wittig, Spaces country manager for Philippines, Vietnam, and Cambodia, told reporters during the launch on Feb. 20.

Located along Antonio Arnaiz Avenue, the Spaces hub has five floors, including a roof deck and underground parking area.

Each level has 450 square meters of floor area. On the first floor, there is a community area with desks for about 35 people, a phone booth, meeting rooms and an in-house cafe, Little Flour.

The second and third floors both have private offices that can accommodate two to more than 30 people, depending on the size and setup of the room. The fourth floor is targeted to be occupied by only one company. Each floor has its own pantry.

The Scandinavian design-inspired hub is also close to malls, restaurants, hotels and other offices in the Makati central business district.

“It is the second (Spaces) location here… This one, like our first one, is meeting all my criteria… What are critical when choosing a location for a major co-working hub? To me, ground zero for major co-working is that it is very close to shopping, to restaurants, to hotels,” Mr. Wittig said.

“It has to be a place where people love to walk even on a Sunday… it has to be an area that attracts people,” he added.

Mr. Wittig said Spaces Arnaiz Makati is currently 34% occupied after a month of operation.

“That’s the essence here. You come in and join the community… We do not only attract millennials, we do not attract only start-ups. We have that perfect balance because you want to have a community that can learn from each other. You want to increase your productivity with exposure,” he said.

Mr. Wittig said the company is open to expanding Spaces outside of Metro Manila, depending on demand.

“Right now, my… mandate is to meet the demand of the markets, and that demand for flexible workspace coming to us is growing with close to 40%… in the Philippines. Globally and in the Philippines this industry is growing with about 30%,” he said.

“I would say for now I’m really looking forward to open the first in… Cebu, Davao. I’m looking forward to that.”

Founded in 2006 in Amsterdam, its parent company IWG also operates Regus, No18, OpenOffice, Basepoint Business Centers, and Signature. — Vincent Mariel P. Galang

ArthaLand launches Savya Financial Center in Taguig

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ARTHALAND Corp.’s Savya Financial Center is located within Arca South, Taguig.
ARTHALAND Corp. launched on Thursday its latest green office building, the Savya Financial Center, in Taguig.

In a statement on Thursday, the listed property developer said that Savya Financial Center is located within Ayala Land, Inc.’s mixed-use development Arca South.

Savya Financial Center is described as a grade A mid-rise office condominium with a fully integrated retail component. Its North and South Towers have been designed with sustainable building features, and registered for dual certification in the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) and the Philippine Green Building Council’s Building for Ecologically Responsive Design Excellence (BERDE).

The company said it used low-emission and non-toxic building materials for the project, as well as implemented a 70:30 glass-to-concrete ratio for optimized natural daylight.

Savya Financial Center has been designed for an energy efficient air-conditioning system, and has a material recovery facility, efficient waste management system, and dedicated low-emitting fuel efficient vehicle parking provisions.

“These sustainable building features, combined with world-class building design, are all meant to deliver function with form. Savya aims to provide a beneficial work environment that will boost energy and resource efficiency, reduce operating costs, and promote a healthier and more productive office space, ultimately uplifting a work-life experience befitting global standards,” ArthaLand said. — V.M.P.Galang

Vista Land to invest P20 billion for Camella condos

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CAMELLA Condo Homes is a new brand for affordable condominiums under Vista Land & Lifescapes, Inc. — COMPANY HANDOUT
VISTA LAND & Lifescapes, Inc. (VLL) is investing P20 billion to develop 32 condominiums under its new Camella Condo Homes (COHO) brand in 25 areas around the country.

VLL Chairman Manuel B. Villar, Jr. said the company is initially investing P10 billion for the first batch of COHO projects.

“We are ready to launch COHO in a big way, so we’re launching in 25 areas, 32 buildings… 
But this is just the start because just the land that we are making available to COHO in these areas, we can already build up to 150 buildings… We are starting with 25. It should double shortly, but dahan-dahan muna tayo [We’ll take it step by step],” he said during a media briefing at the Mella Hotel in Las Piñas City on Tuesday.

COHO is Camella’s brand for affordable condominiums. The projects will be complemented by either a Vista Mall or commercial strip featuring brands from VLL affiliate All Value Holdings such as Coffee Project, Bake My Day, All Day Supermarket, All Home and Vista Cinemas.

COHO projects in the pipeline are located in Antipolo, Bacolod, Bacoor, Baliuag, Bataan, Bohol, Butuan, Cagayan de Oro, Caloocan, Davao City, Dumaguete, General Santos, Iloilo, Imus, Las Piñas, Legazpi, Lipa, Mactan, Palawan, Pampanga, Subic, Tagaytay, Taguig, Tagum, and Talisay, Cebu.

At present, there are already 14 existing developments under COHO’s portfolio.

While other developers focus more on developing condominiums in the Metro Manila, Mr. Villar said the company will target the provinces.

“We feel now that we have to launch it systematically… sabayan ’to [at the same time]. This is not going to be in lieu of our existing companies… They will still continue their projects… Iba ’tong COHO [COHO is different]… We hope to become a major condo builder maybe next year, two [years] from now, but hopefully even as early as this year, we will become a major condo builder,” Mr. Villar said.

COHO units will have one-bedroom, 30-square meter (sq.m.) and two-bedroom, 40-sq.m. configurations, with prices ranging from P2.4 million to P3.3 million.

Amenities include a clubhouse, swimming pool, function hall, gardens, jogging paths, and a gym. — Vincent Mariel P. Galang

Avida expects P13B in sales from Makati project

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AN artist’s perspective of Avida Towers Makati Southpoint in Barangay Bangkal, Makati City. — COMPANY HANDOUT
By Arra B. Francia, Reporter

AVIDA LAND Corp. sees at least P12.9 billion in sales from its fifth residential project in Makati City, where it hopes to attract young Filipino millennials working in the area.

Located along Chino Roces Avenue, Barangay Bangkal in Makati City, Avida Towers (AT) Makati Southpoint will feature three 32-storey buildings offering a total of 924 residential units.

The midrange brand of property giant Ayala Land, Inc. (ALI) said the first tower alone is expected to generate P4.3 billion in sales.

Units come in studio layouts covering 23.3 square meters (sq.m.) and one-bedroom sized at 38.2 sq.m. The company also offers a junior one-bedroom configuration, or a studio unit that comes with an additional partition for the bedroom.

Prices range from P4.4 million to P8.5 million, indicating a price of P197,000 per sq.m. Buyers must have a total household income of at least P70,000 to P100,000 every month.

Amenities include a central lobby for all three towers, swimming pool, clubhouse, children’s play area, indoor gym, jogging path, and linear park.

Avida Land Business Area Head for Metro South Properties Reginald D. Alabe said they started selling units for the first tower in December, ahead of its formal launch on Thursday.
“We started selling as early as December. Of the launched units, 40% have been sold. We are reserving some units for price optimization,” Mr. Alabe said in a press briefing in Makati yesterday.

Mr. Alabe said they expect to sell out the first tower within a year and a half, and to complete it by 2024. The second tower is set to be unveiled by late next year or early 2021, depending on the pace of sales in the first tower.

“If sales velocity jumps up, we will be pulling forward also the launches of the succeeding towers,” Mr. Alabe said.

The Avida Land executive noted that they have been experiencing brisk sales take-up for its residential properties in Makati since 2007, when the company launched the two-tower AT Makati West. The company has already sold out AT Makati West alongside AT San Lorenzo.

Avida Land is also nearing completion of two other projects in Makati, namely AT Asten and One Antonio.

“We expect Makati to contribute 8% of our residential revenues this year. Our success here will continue with Makati Southpoint, which will fulfill the need of a changing market,” Avida Land Vice-President and Head of Corporate Planning Group Raquel S. Cruz was quoted as saying in a statement.

Mr. Alabe said the ratio of buyers are equally split between end-users and for investment purposes, while also noting that they adhere to the foreign buyer limit of 40% for all properties.

New department eyes ₱1-trillion budget, squatter housing focus

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poverty slum area
THE LAW creating the Department of Human Settlements and Urban Development (DHSUD), which President Rodrigo R. Duterte signed on Feb. 14, will be followed by another proposed bill which will seek to address the housing needs of around 2 million informal settler families nationwide, according to Housing and Urban Development Coordinating Council (HUDCC) Chairman Eduardo D. del Rosario.

Mr. Del Rosario told BusinessWorld in a chance interview at the Palace last week that with the creation of the DHSUD, the next area of focus will be “addressing the housing needs” of Filipinos, especially the poor.

“For a start we are planning to come up with a proposed bill which we will call Republic Act on the Development and Production of Housing Units Nationwide to target around 2 million informal settler families nationwide,” he added.

“If that is pursued and become a Republic Act, we are envisioning to have a budget of P50 billion per year for 20 years; because to construct 2 million housing units, we need P1 trillion more or less. In the next four to 20 years, we are targeting that,” Mr. Del Rosario explained.
Asked to comment, Presidential Spokesperson Salvador S. Panelo said in a chance interview at the Palace on Feb. 20 that the proposal could move forward if the funding is there. “Kung meron bang pondo eh bakit naman hindi (If it can be funded then why not?),” he said.

Lawyer and Ateneo Policy Center research fellow Michael Henry Ll. Yusingco said via e-mail on Feb. 25: “I think Filipinos are aware that there have been extensive housing projects before that are now virtual ghost towns. So any bold declaration, specifically one that calls for spending trillions of pesos, will automatically raise alarms in the minds of many Filipinos.”

Mr. Yusingco also said it should be better explained how the funding levels came to be determined. “Was there a study done? Were public consultations conducted? Was a comprehensive survey on housing and home ownership done? I am more interested to know if the projections are supported by comprehensive research and study,” he said. “We have seen how big-ticket projects can be susceptible to graft and corruption, how much more those which are not evidence-based?”

“If there is research and evidence to support the numbers claimed, then government has the responsibility to discuss this with the public. This will definitely increase our confidence in the purported plans for the new department. Remember that with one word, the President can accelerate the implementation of this vision, as he has done with the Build, Build, Build program after growing impatient at the seemingly lack of urgency shown by his underlings,” he added.

Mr. Yusingco said further that helping the public understand why such a target is necessary to eliminate homelessness in the country “will even be a bigger boost for the housing department’s plans.”

“Help us understand what needs to be done to meet this goal and show us how we can contribute to its success. I truly believe more Filipinos now want to be part of the solution than merely waiting for government to do its job,” he explained.

Professor Maria Ela L. Atienza, who chairs the University of the Philippines’ Department of Political Science said via e-mail that “it is important to consider the causes of having informal settlers.”

“The issue of having informal settlers also cannot be solved simply by just building housing units for the homeless informal settlers but also making sure that the areas where the housing units are built are environmentally safe, culturally appropriate for the settlers, sustainable livelihood opportunities are available, easily accessible and with basic facilities like water and electricity,” she added.

“There should also be community building and basic public services like health centers, day care centers and schools with the necessary staff. If only housing units are built, without the basic infrastructures, services, and livelihood opportunities, beneficiaries will abandon their houses or there will be very few takers. This is usually the case with many resettlement communities far away from places of work and without basic facilities and infrastructures. People refuse to live there.”

Ms. Atienza added that a sufficiently large budget is needed.

“This is similar to popular laws like the Universal Health Care Law… and free tuition for (state) colleges and universities. They are needed and definitely will win popularity points but the practical questions are: (1) Will there be sufficient funding? (2) How will this be implemented?.

“Public housing must be incorporated in the economic and investment planning of the government if the area becomes a genuine priority. Given the current priorities (Build, Build, Build and intelligence spending) of the administration as well as the squabbling between the executive and legislative branches over the national budget, funding this housing program may not be given a clear priority… However, even if there is ample funding for this ambitious plan, this has to be sustained and prioritized not just by the current administration but also succeeding administrations. Accountability mechanisms must also be in place as these projects are prone to corruption and abuse. At the same time, the beneficiaries as stakeholders must also be part of participatory processes that will ensure accountability of all stakeholders but also participatory management,” she said. — Arjay L. Balinbin

Robinsons forms new unit

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ROBINSONS Land Corp. (RLC) has established a new property unit, it told the stock exchange on Wednesday. 

The Gokongwei-led property developer said in a disclosure that the Securities and Exchange Commission has approved the incorporation of Bonifacio Property Ventures, Inc. The newly formed unit will be fully owned by RLC.

“We created the subsidiary to engage in real estate projects,” a company representative said when sought for comment.

RLC has several residential projects in Bonifacio Global City, including the Trion Towers, Fifth Avenue Place, McKinley Park Residences, and The Fort Residences.

It operates five business segments, namely commercial centers, residential, office buildings, hotels, and infrastructure and integrated development.

This year, RLC plans to further increase its GLA to 1.61 million sq.m., with the opening of Robinsons Place in San Pedro and Antipolo, in addition to the expansion of Robinsons Magnolia in Quezon City.

On a nine-month basis, RLC’s attributable profit climbed 43% to P6.55 billion. Revenues, meanwhile, stood at P21.8 billion, 31% higher year on year.

Incorporated in 1980, RLC serves as the real estate investment arm of JG Summit Holdings, Inc., which also has investments in food, agro-industrial and commodities, air transportation, banking, and petrochemicals.

Shares in RLC dropped by 2.69% or 65 centavos to close at P23.50 each at the stock exchange on Wednesday. — Arra B. Francia

Filinvest Mimosa+ gains ground

Filinvest Mimosa+

THE development of Filinvest Mimosa+ Leisure City helping boost Clark’s efforts to become a major economic hub.

Filinvest Mimosa+, the property giant’s first township in Central Luzon, saw the opening of Workplus, an office campus equipped with fiber optic facilities, and the upgrade of Quest Plus Conference Center Clark, last year.

There are plans to develop an international casino and hotel, as well as a lifestyle mall.

“Operating soon at Filinvest Mimosa+ is the Lodgeplus, a residential facility that will complement the Workplus office campus, as Filinvest Mimosa+ continues to promote a healthy work-life balance,” the company said.

The Clark Mimosa Strip, Filinvest’s first commercial project venture in the Central Luzon region, will feature concept stores, restaurants, and wellness services.

Cathay Land’s Ng sees strong demand for industrial lots

CATHAY LAND, Inc. is expanding its industrial park in Silang, Cavite to address growing demand in the area.

The property developer launched last month Phase 2 of Cavite Light Industrial Park (CLIP) which will add 20 hectares of new space. This brings CLIP’s total land area to 70 hectares.
Jeffrey T. Ng, president of Cathay Land, told BusinessWorld in an email that the company has seen rising demand for industrial lots.

“The demand for industrial lots picked up dramatically last year due to the government’s Build, Build, Build program, and locators leaving China due to the ongoing China-US trade war,” Mr. Ng said.

Only 28 lots will be offered at CLIP Phase 2. Lot sizes range from 1,600 square meters (sq.m.) to 2,600 sq.m. at P9,300 per sq.m.

Located along Maguyam Road, CLIP currently hosts locators from pharmaceutical, packaging, technology, trucking, glass, and aluminum industries.

“The prevailing business environment and the continued growth in the local manufacturing industry entail that new business parks must be developed to help this crucial component of the economy foster in the years ahead. Our Cavite Light Industrial Park certainly addresses this need,” Mr. Ng said in a statement.

At the same time, Cathay Land launched the second phase of expansion of Mallorca Villas, a residential subdivision adjacent to the CLIP.

“The commercial and residential components of Mallorca City certainly give an impetus for companies to locate in CLIP since it will also address their executives’ and employees’ housing requirements. Overall, the integration of CLIP into Mallorca City promises a better quality of life to locators and definitely worth the investment,” Mr. Ng said.

Cathay Land said CLIP and Mallorca Villas will be rebranded into a township called Mallorca City.

The company began investing in Silang 15 years ago with the 500-hectare master-planned community, South Forbes Golf City.

In 2018, Cathay Land also launched Acienda Designer Outlet, an international outlet mall developed in partnership with London-based lifestyle retail developer Freeport Retail. It also added two low-rise residential condominium projects, namely Stanford Suites 3 and Fullerton Suites.

Cathay Land is part of the Cathay Group of Companies together with other companies like Cathay Pacific Steel Corp., Cathay Metal Corp., Eurotiles Industrial Corp., Federal Hardware, Ceramic Plaza, and PC Express. — Vincent Mariel P. Galang

Collaborative working spaces now available at Savoy Manila

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Savoy Hotel Manila
Savoy Hotel Manila now has co-working spaces called The Squares.
By Vincent Mariel P. Galang Reporter

WITH the growing popularity of co-working spaces, it seems like it’s only a matter of time before hotels ditch their “business centers.”

Savoy Hotel Manila recently introduced The Squares, which it describes as the first-ever collaborative space in a hotel in the country.

The Squares is an added service for Savoy Hotel’s in-house guests who want to catch up on some work or those who want to hang out outside their rooms.

“We’re happy to claim it (is the first because), when we opened this, pre-opening pa lang we already envisioned that we will really be pioneering this kind of a service for our guests, and a lot of people who have discovered it are telling us that… this is one of a kind. Hindi pa ‘yan nakikita sa ibang [this is not yet seen in other] hotels, especially by virtue of our location,” Samantha C. Manuel, marketing and communications manager of Savoy Hotel Manila, told BusinessWorld in an interview last Jan. 22.

Located within the Newport City complex in Pasay, Savoy Hotel is right across Ninoy Aquino International Airport Terminal 3, making it ideal for business and leisure travelers.

“Since we get a lot of travelers, iba-iba kasi ‘yung [there are different] lifestyle, behavior… a lot are young entrepreneurs on the go that sometimes they just check-in to catch a flight pero [but] also need to catch up on some work, also, so at least they have that option,” Ms. Manuel said.

She noted some guests, who are on staycations, also prefer to hang out at The Squares than leave the hotel.

“If ever I’ll be spending, at least it’s within the premises of the hotel, and I can be in my shorts, in my slippers,” Ms. Manuel added.

Savoy Hotel’s collaborative spaces are located in every two floors of the 12-storey hotel, with the main space located at the second floor.

All spaces will have its own kiosk for snacks and drinks, and will have an express check in/out counter.

The main space can accommodate up to 30 people, while the other spaces are half its size. The spaces have Wi-Fi connection and computers, as well as board games and a common television.

Savoy Hotel is also holding events for in-house guests in these spaces.

“Normally it’s in the last weekend of the month… Last year, we had workshops good for 15-20 people. We had wine tasting workshop, coffee appreciation,” Ms. Manuel said.

While The Squares has been open for seven months, Ms. Manuel said it is still in the soft opening stage.

Savoy Hotel has 684 rooms, ranging from standard to suites. It is situated Resort World Manila and Newport Mall.

The hotel was recently named Best New Hotel in TripZilla Excellence Awards 2018. Opened last June 2018, this is the second hotel carrying Megaworld Corp.’s homegrown brand. The first located inside Boracay Newcoast, its 150-hectare tourism estate in Boracay Island.

CPG allots P3B for affordable housing projects

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Phirst Park Homes
By Arra B. Francia Reporter

CENTURY PROPERTIES Group, Inc. (CPG) will be spending at least P3 billion for affordable housing projects this year, as it continues to expand its offerings in the segment.
The board of directors of the Antonio-led property developer recently approved plans to issue unsecured fixed-rate retail bonds worth up to P3 billion within the year.

“The bonds will be issued this year, 2019. Proceeds will partially fund affordable housing projects and other corporate requirements,” a company representative said in a text message.

CPG said it will file the prospectus for the issuance at the Securities and Exchange Commission soon.

The listed firm catered to the middle-income market through its high-rise condominiums and office developments in Metro Manila. In 2017, it entered the affordable housing segment.

Since then, CPG has launched its affordable housing brand, Phirst Park Homes. For its first project, it offered about 3,000 units worth P2 billion on a 26-hectare property in Tanza, Cavite. It partnered with Japan’s Mitsubishi Corp. for the projects.

The company then unveiled Phirst Park Homes in Lipa, Batangas, a 20-hectare project that will offer 1,867 units.

The affordable housing projects target end-users, and offer a monthly amortization of as low as P9,000.

Following the launch of the two projects, CPG has formally established Phirst Park Homes, Inc., its joint venture project with Mitsubishi that will aim to launch 15 projects with about 33,000 units over the next five years. These projects worth P10 billion are expected to generate P57 billion in sales.

The company has also partnered with Global Gateway Development Corp. for a 2.6-hectare property inside Clark Global City in Mabalacat, Pampanga.

CPG earlier said that it wants the affordable housing segment to account for 35% of its total income.

Aside from affordable housing, the company has also diversified into the leisure property segment, with the second phase of its Batulao Artscapes project in Nasugbu, Batangas.

CPG is also banking on its office, retail, and hospitality projects to post recurring revenues of P1.5 billion starting in 2020. By then, the company’s leasable spaces are seen to reach 350,000 sq.m. from around 130,000 sq.m. in September 2018.

CPG’s net income attributable to the parent stood at P608.56 million in the first nine months of 2018, 13% higher year on year. Gross revenues, meanwhile, rose by 45% to P7.5 billion during the same period.

Megaworld expects P1.5 billion in sales from Bacolod tower

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TWO REGIS, a 14-storey tower, will rise within Megaworld Corp.’s Upper East township in Bacolod. — MEGAWORLD CORP.
MEGAWORLD Corp. targets to book P1.5 billion from the sale of units in its second residential tower within The Upper East township in Bacolod.

In a statement issued Monday, the property firm of tycoon Andrew L. Tan said it has unveiled Two Regis, a 14-storey residential tower at the corner of Regis and Madison Streets of the 34-hectare estate.

Two Regis will offer a mix of studio units sized up to 31.5 square meters (sq.m.), executive studio (up to 37.5 sq.m.), one-bedroom (up to 43.5 sq.m.), and two-bedroom (up to 87 sq.m.). Several units will have their own balconies. The company will also sell units in different size options on Two Regis’ penthouse floor, called the Upper Sky Suites Floor.

The residential tower will feature three Skygardens, two of which will be located on the 12th floor, while the other one is located at the center of the eighth floor.

Other amenities will include a lap pool, kiddie pool, fitness center, daycare center, and function rooms.

Megaworld expects to complete Two Regis in 2023. It will stand next to a lifestyle mall that is currently in the works.

The launch of Two Regis comes six months after Megaworld unveiled its first residential tower in the area, One Regis.

“The overwhelming success of our first residential tower is a clear indication that Bacolod has embraced the convenience of both condo living and township living,” Megaworld Bacolod Vice- President for Sales and Marketing Mary Rachelle I. Peñaflorida said in a statement.

The company said it is now fast-tracking the development of projects inside The Upper East.
“We are fast-tracking the developments inside The Upper East to ensure that our future residents will be able to enjoy the mall, the parks, the hotel, and the other components of the 34-hectare township once they start living in the condo,” Ms. Peñaflorida said.

Megaworld started development of The Upper East back in 2018, and has allocated to spend P35 billion for the project in the next 10 years. The project was inspired by New York City’s Upper East Side district, and will house residential condominiums, lifestyle malls, commercial centers, and office towers, among others

The company’s net income attributable to the parent climbed 13% to P11.29 billion in the first nine months of 2018. Revenues also grew by 13% to P41.76 billion in the same period.
Shares in Megaworld fell by a centavo or 0.19% to close at P5.12 each at the stock exchange on Monday. — Arra B. Francia

ALI raises 2019 capex budget to P130 billion

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Artistic rendering of Ayala Land Inc.'s The Flats at Amorsolo in Makati City
AYALA Land Inc (ALI) said that it set a capital expediture (capex) budget of P130 billion this year, up from P110.1 billion a year earlier with the largest portion of the capex funding its residential projects.

In a briefing in Makati City on Friday, ALI Chief Financial Officer (CFO) Augusto Cesar D. Bengzon said that about 40% will go to residential development, 20% to 25% to its leasing business, and the remainder deployed for land acquisition.

The capex budget will be funded by bank debts and bond issues, for which the company will file a P50 billion shelf registration application to the Securities and Exchange Commission (SEC), Mr. Bengzon said.

“We will be going up to the board for a P50 billion shelf registration in the next twe weeks… The shelf registration is good for a three-year period,” Mr. Bengzon said.

ALI President and Chief Executive Officer (CEO) Bernard Vincent O. Dy said the bulk of the projects “will be primarily in Metro Manila, the Greater Manila Area, Region 4-A, and the VisMin region.”

“The plan is to launch two estates this year. One in Tarlac, one in Batangas,” Mr. Dy said, also noting that “we continue to look for new opportunities within the region.”

Mr. Dy also said for the projects in its pipeline, it is is increasing the number of beds in ALI’s dormitory-type project The Flats by 3,545 beds — with 1,145 to be located in the Bonifacio Global City Parkway area and 2,400 in Circuit Makati — on top of its current 2,228 total beds in Amorsolo, Makati and BGC 5th Avenue.

Also in the pipeline are the addition of 3,968 square meters of gross leasable area (GLA), equivalent to 898 seats, to its co-working space business Clock In which currently has 433 seats.

ALI reported that net profit in 2018 rose 16% to P29.2 billion, citing increased demand for residential and commercial space as well as lease for BPO offices.

“We introduced two new estates to bring our total to 26, registered the highest level of residential sales in our history, and stayed on track to open more commercial developments. These led to strong financial results and positioned our company for continued growth in the coming years,” Mr. Dy said in a statement.

Consolidated revenue hit P166.25 billion in 2018, up 17%.

In 2018, the company’s capex budget was P110.1 billion, with 41% going to residential projects, 12% to malls, 6% to offices, 5% to hotels and resorts, 15% to land acquisition, 12% to estate development, and 9% to take stakes in Prime Orion Philippines Inc (POPI) and MCT Bhd.

Mr. Dy said that the company set a net profit target of P40 billion by 2020.

“This is now within striking distance. Hopefully the economy will continue to be supportive,” Mr. Dy saud during the briefing.

“We now need to grow by 17% a year, [starting] in 2019,” according to Mr. Dy.
On Friday, ALI closed at P44.50, down 1.11%. — Reicelene Joy N. Ignacio

Megaworld to add 2 more towers in Pasig township

DESIGNED by Spanish sculptor Gines Serran Pagan, the Arco de Emperador stands 19 meters tall and is the centerpiece of Megaworld’s 12.3-hectare township, Arcovia City. — ARRA FRANCIA
By Arra B. Francia, Reporter

MEGAWORLD Corp. has sold 60% of the units of its P4-billion residential condominium in Arcovia City, spurring plans to launch two more towers within the township in Pasig City.

The listed property developer unveiled the 18 Avenue de Triomphe in the middle of 2018, and is slated to be the first residential tower to rise in the 12.3-hectare estate along C-5 road.

“Reception has been very good, it’s well received. We’re catering to millennials…60% of the building has already been taken up,” Megaworld Resort Estates, Inc. First Vice-President for Marketing John Angelo Natividad told reporters after the launch of Arcovia’s City’s landmark monument, the Arco de Emperador, late Tuesday. 

The 37-storey 18 Avenue de Triomphe will feature 576 residential units ranging from studio sized up to 32.5 square meters (sq.m.), one-bedroom (up to 63 sq.m.), two-bedroom (up to 110.5 sq.m.), and three-bedroom (up to 154 sq.m.). Each unit will also have their own balcony. 

Amenities in the tower include a swimming pool, children’s playground, outdoor fitness park, game and entertainment room, fitness center, event hall, outdoor lounge, and a viewing deck. 

The company expects to complete the tower by the end of 2022. 

Megaworld Executive Vice-President and Chief Strategy Officer Kevin Andrew L. Tan noted that they will be launching two more residential towers in Arcovia City after 18 Avenue de Triomphe. 

“For our residential condominium, we have one, the 18 Avenue de Triomphe, and we will be launching two more residential towers after this,” Mr. Tan told reporters after the same event. 

“We will be opening the retail area by third quarter, and office building by end of the year,” Mr. Tan added. 

Megaworld has committed to spend P35 billion for the development of Arcovia City in a span of 10 years. The township will offer a mix of office, residential, retail, and lifestyle mall components. 

Mr. Natividad said that they have seen a healthy balance between the demand for residential and commercial properties in the township. To-date, they have already opened a Landers Superstore in the township. 

Standing in the middle of Arcovia City is the Arco de Emperador, a 19-meter high arch monument designed by Spanish sculptor Gines Serran Pagan. The company will also build a museum next to the monument, which will be surrounded by a landscaped plaza with benches. 

Megaworld booked a net income attributable to the parent of P11.29 billion in the first nine months of 2018, 13% higher year on year. Revenues also grew by 13% to P41.76 billion in the same period. 

Shares in Megaworld dropped 2.69% or 14 centavos to close at P5.06 each at the stock exchange on Wednesday. 

DataLand to launch projects in Clark Global City

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Clark Global City
Artist’s perspective of Clark Global City in Pampanga —
THE development of Clark Global City gains ground as Global Gateway Development Corp. (GGDC) partners with real estate firm DataLand, Inc. for an office building, dormitel, and hotel in the area.

In a statement issued Wednesday, GGDC said DataLand is subleasing a 2.3-hectare property in Clark Global City in Mabalacat, Pampanga.

DataLand is the property unit of DDT Konstract, Inc., and has developed residential condominiums in Metro Manila namely The Silk Residences in Sta. Mesa, Manila and The Olive Place in Mandaluyong, as well as The Ivy Wall Hotel in Puerto Princesa, Palawan.

“We believe that a partnership with GGDC is a strategic move and we look forward to building developments that help create a progressive environment in one of the largest office markets in the Philippines,” DataLand President Andrea Marie Tamayo-Ulep said in a statement.

GGDC Chairman Dennis A. Uy said having more partners is vital in its efforts to turn Clark Global City into the next business district outside Metro Manila.

“We want Clark Global City to serve as a platform for other property developers to not only take a piece of the action in Clark, but also foster economic growth and development beyond the traditional business districts,” Mr. Uy said in a statement.

GGDC has been partnering with several companies to develop parcels of land in the 177-hectare Clark Global City, 109 hectares of which are suitable for construction.

Earlier this week, GGDC said Suyen Corp., the company behind homegrown clothing brand Bench, has subleased a 2,886-square meter property where it plans to build an office tower.
Century Properties Group, Inc. (CGP) has also signed a memorandum of agreement for a joint venture to develop an affordable housing project in the area, while SM Prime Holdings, Inc. has signed a sublease agreement for retail, office, and hotel projects there.

GGDC holds the lease rights for Clark Global City until 2085, after it took over the property from its previous owner in 2017. Its masterplan involves top-grade office buildings, upscale retail outlets, academic centers, sports centers, an urban park, an integrated resort and casino, as well as modern support services and amenities.

GGDC is a wholly-owned unit of Udenna Development Corp., the property arm of Mr. Uy’s Udenna Corp. Aside from property development, the Udenna Group also has interests in petroleum and oil, logistics, infrastructure, education, and convenience stores, among others. — Arra B. Francia

KPO sector to drive office demand this year — Colliers

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Parkway Corporate Center
Parkway Corporate Center offers office space in Filinvest City, Alabang.
TRADITIONAL offices and knowledge process outsourcing (KPO) providers are seen to sustain the demand for office spaces in 2019, although the delay of accreditations by the Philippine Economic Zone Authority continue to pose a threat on their expansion in the country.

This is according to the fourth quarter 2018 Property Market Report of real estate consultancy services firm Colliers International Philippines, which noted that 33% of total net take-up of 1.18 million sq.m. in 2018 came from traditional firms, government agencies, and flexible workspace operators.

Meanwhile, KPO providers accounted for 27% of the net take-up, or around 381,000 square meters (sq.m.).

“Colliers sees the KPO sector driving office demand in the next 12 months. KPOs provide higher-value outsourcing services such as health information management, software engineering, and finance and accounting,” according to Colliers’ report prepared by Research Manager Joey Roi H. Bondoc.

Among the KPO companies that occupied space during the fourth quarter of 2018 are Infosys and AECOM, joining the ranks of Amazon and Google which are already holding office in Metro Manila.

“The entry and expansion of Amazon and Google indicates that Metro Manila is able to successfully compete for major KPO business.”

On the other hand, offshore gaming operators occupied about 303,000 sq.m of office spaces in 2018, or about 21% of total net take-up. This is slower than the sector’s share of 35% to 2017 net take-up.

“It might appear that there was a decline from the offshore gaming from 35% down to 21%, but if you look at the absolute figures, the offshore gaming sector continues to record high occupancy in Metro Manila,” Mr. Bondoc said during a presentation in Makati City on Wednesday, adding that offshore gaming operators have taken up 710,000 sq.m. since 2016.

Demand for more office spaces will likely continue in the next 12 months, with 28% of buildings due for completion this year are already 28% pre-leased, according to Colliers data. Based on pre-commitments, Alabang, Makati Central Business District, Fort Bonifacio, and the Bay Area are set to record the strongest take-up this year.

Colliers’ projected demand of about 1 million sq.m. this year will be able to absorb the 1.2 million sq.m. of new office space set to come online in 2019, leading to a vacancy of five percent by the end of the year.

Mr. Bondoc however pointed out that the main challenge for this year is the sustainability of these growth drivers. PEZA proclamations have been facing delays since 2016, which could hamper outsourcing firms’ interest to expand in the country given the lack of incentives.

The property consultant said that there are 805,000 sq.m. of office space in Metro Manila that are pending PEZA approval from 2016 to 2018, while there are 184,000 sq.m outside the metro.

Since 2016, buildings covering 586,000 sq.m were approved in Metro Manila, with only 62,000 sq.m. in Cebu.

“Colliers encourages the government to expedite the approval of PEZA applications to sustain the outsourcing sector’s growth. In our opinion, stakeholders such as developers and qualified occupants should aggressively call of the proclamation of new PEZA spaces in Metro Manila and provincial areas,” the company said. — Arra B. Francia

Bench founder Ben Chan plans to develop office tower in Clark Global City

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Clark Global City
Artist’s perspective of Clark Global City in Pampanga —
THE COMPANY behind homegrown clothing brand Bench is planning to develop an office tower in Clark Global City, Mabalacat, Pampanga.

In a statement issued over the weekend, Global Gateway Development Corp. (GGDC) said it has signed a memorandum of agreement with Suyen Corp. for the sublease of a 2,886-square meter (sq.m.) property in Clark Global City.

Suyen Chairman and Chief Executive Officer Ben Chan said they plan to build an office tower for lease in the property, banking on the strong demand for office spaces in the rising business district outside Metro Manila.

“We’re bullish on the Philippine economy and seeing how it’s slowly but surely extending to key cities outside of Metro Manila,” GGDC quoted Mr. Chan as saying in a statement.

Suyen had developed Bench Tower, a mixed-use, high-rise building in Bonifacio Global City, Taguig. The 24-storey building houses the firm’s corporate offices and office spaces for lease.

“Our government has been working hard to promote Clark and to make it much more accessible. There’s a lot that’s been done to develop Clark and even more that can be done to help it reach its full potential, so it’s not hard to see it becoming the next big metropolis it’s poised to be,” Mr. Chan added.

GGDC has been partnering with several firms to develop parts of Clark Global City, in line with its vision to transform the former military base into a business district.

So far, the company has inked a sublease agreement with SM Prime Holdings, Inc. for retail, office, and hotel projects. It has also recently signed a memorandum of agreement with Century Properties Group, Inc., which plans to develop an affordable housing project.

“Through Clark Global City, we hope to attract more businesses and investors to expand in the Philippines and thereby create more and better employment opportunities for our countrymen. With our partners, we look forward to realizing our vision as soon as possible,” GGDC Chairman Dennis A. Uy said in a statement.

GGDC is a wholly owned unit of Mr. Uy’s property firm Udenna Development Corp. It took over Clark Global City in 2017, after it secured the lease rights for the 177-hectare property for the next 67 years.

Clark Global City has a buildable area of more than 109 hectares, which is envisioned to host top-grade office buildings, upscale retail outlets, academic centers, sports centers, an urban park, an integrated resort casino, as well as support services and amenities.

The property is also seen to benefit from the construction of several infrastructure projects, including the expansion of the Clark International Airport, the NLEX-SLEX Connector Road, the Subic-Clark Cargo Railway, and Philippine National Railway North Railway. — Arra B. Francia

Grand Hyatt Manila Residences opens second tower

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Grand Hyatt Manila Residences

GRAND Hyatt Manila Residences, a joint venture of Federal Land, Inc. and Japan’s Orix Corp, recently opened the second tower which offers residents the renowned hospitality, services, and amenities that come with the Grand Hyatt brand.

Grand Hyatt Manila Residences South Tower is located within Federal Land’s Grand Central Park, a 10-hectare mixed-use development in Bonifacio Global City.

The two-tower residential development is the only one under the Grand Hyatt brand in Southeast Asia.

“Calling Grand Hyatt home means having the luxury of hotel-like perks such as concierge and housekeeping services and a beautiful, inspiring environment that provides more than comfort, ease, exclusivity and security. It also means having a private access to Grand Hyatt Manila hotel, where more luxurious experiences and dining pleasures await,” the company said in a statement.

The 50-storey tower features an “elegant wraparound glass design,” and 188 units with above average floor-to-ceiling heights and a private balcony with views of the metropolis.

Among its facilities include the “glass function room;” the pool deck and lounge; a teen entertainment zone; and children’s play area.

Unit owners will secure a Globalist membership to the World of Hyatt loyalty program, which allows members to earn points for availing hotel services and redeem rewards such as dining and spa experiences and room upgrades.

Greenfield to develop luxury community in Laguna

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Greenfield Trava
Trava is a suburban residential community being developed in Greenfield City, Sta. Rosa, Laguna.
GREENFIELD DEVELOPMENT Corp. (GDC) is developing a luxury residential community within its 400-hectare Greenfield City township in Sta. Rosa, Laguna.

Under new “ultra-luxe” brand Greenfield Deluxe, Trava is a 33-hectare residential community where “luxury meets green living.”

“In preserving the laidback environment of the South, Trava incorporates the urban conveniences of a premiere development with an ecological design that dedicates a huge 45 percent of the 33-hectare prime land to green open spaces and eco-efficient features,” the developer said in a statement.

Greenfield Deluxe tapped architectural firm Locsin and Partners for the master-planned community. Trava, which was launched in May 2018, features tree-lined roads, lush parks, fully underground utilities, and a streetscape with a four meter-wide lawn.

At present, Trava offers 315 saleable lots with sizes ranging from 550 square meters (sq.m.) to 750 sq.m. Prices range from P24,000 to P32,300 per sq.m.

Amenities include an ecologically designed clubhouse, a social hall, fitness gym, function and recreation rooms, children’s pavilion, a pool complex, adult and kiddie pools, dance studio, tennis court, basketball court, and bike and jogging lanes.

GDC has been involved in real estate development in Sta. Rosa, Laguna since the 1990s. The developer has transformed agricultural lands into cities within a park with its future-oriented homes, infrastructures, communities, and landscapes.

GDC is also the developer of Greenfield District in Mandaluyong City. Founded in 1961, the diversified real estate developer has been very committed in developing lands into communities that will be relevant throughout the years, still making sure that the environment is taken care and employing the latest technology. In addition to this, the company was founded by Jose Y. Campos, also the founder of pharmaceutical company, Unilab. — Vincent Mariel P. Galang

Oyo to invest $50M in PHL market

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Oyo Hotels and Homes
Oyo Hotels and Homes currently operates over 13,000 franchised or leased hotels and over 3,000 homes around the world.
OYO Hotels and Homes is entering the Philippine market, where it committed to invest over $50 million to “transform” the local hospitality industry.

Oyo Hotels, which claims to be South Asia’s largest chain of hotels, home, and spaces, currently has 21 franchised and leased hotels with more than 500 rooms in Metro Manila, Tagaytay, and Cebu.

“We at Oyo, our mission…(is) to make affordable living places, to make quality living places… We are very, very excited to… bring this mission in the Philippines,” Abhinav Sinha, Oyo Hotels and Homes global chief operating officer, said during the media launch in Bonifacio Global City on Wednesday.

The company helps small and independent hotels compete with big chains by providing better technology, and improving operational efficiency, including staff training, and revenue management.

Since 2013, Oyo has expanded in 500 cities in India, China, Malaysia, United Kingdom, Nepal, United Arab Emirates, and Indonesia.

For its Philippine expansion, Oyo targets to have a total of about 20,000 rooms in key cities in the Philippines.

“Ours is a business where we have multiple areas where we invest to grow the business in any country. In [the] Philippines, we are committing $50-million towards building capabilities of infrastructure innovation, towards building our technology capabilities in the country, towards investing in building a large team across multiple markets. We are planning to go to more than 10 markets within this year itself. So, the investment will be across technology, across infrastructure innovation, and across building a very strong local team in the country” Mr. Sinha told BusinessWorld in an interview.

The company noted its partner hotels in the Philippines have seen a major leap in occupancy rates. For instance, Oyo 110 Asiatel Hotel, an airport hotel located near the Ninoy Aquino International Airport (NAIA), saw an increase in occupancy from 63% to 82% in just three months after adopting the Oyo brand name.

Ankit Arya, Oyo country head for the Philippines, noted during the same interview that the company is looking for partner hotels in Baguio City, Subic, Angeles City, Clark, Tagaytay City, Batangas City, Naga City, Legazpi City, aside from Metro Manila. It is also considering expansion in Cebu City, Iloilo City, Boracay, Davao and Cagayan de Oro.

For the Philippines, the company expects to generate more than 1,000 direct and indirect job opportunities.

“Within Southeast Asia, of course, Philippines is a very large and significant economy. It also has a very significant in-bound tourism, almost at the scale… mirrors what you see in India and its growing at the pace of more than 10% per annum, so we are very, very committed to [the] Philippines, given the strength of its local economy, given the size of the hotel industry, and given the growth of tourism that the country has seen,” Mr. Sinha said during the interview.

Oyo currently operates over 13,000 franchised or leased hotels and over 3,000 homes as part of its chain around the world. The company is backed by investors such as SoftBank Group, Greenoaks Capital, Sequoia India, Lightspeed India, Hero Enterprise and China Lodging Group. — Vincent Mariel P. Galang

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