Office space demand to slow

April 28, 2020 | 12:03 am [ bworldonline.com ]

 The Makati central business district has become a virtual ghost town since the start of the lockdown in mid-March. -- REUTERS

OFFICE space demand in Metro Manila is expected to slow in the near and medium-term, as the coronavirus disease 2019 (COVID-19) pandemic continues to disrupt businesses.

“Downward trend in the growth rate of supply and demand of office space is expected in the short-to medium-term due to disruption of business activities,” Cushman & Wakefield said in its first quarter 2020 investment report.

Since mid-March, the enhanced community quarantine (ECQ) has halted economic activity in Luzon. Government and private offices, shopping malls, hotels and restaurants have been shuttered as millions of Filipinos are placed under strict home quarantine to contain the spread of the coronavirus.

The government extended the ECQ in Metro Manila, Central Luzon, Calabarzon and other key provinces until May 15.

“As the ongoing ECQ measures severely impacts the operation of the retailers and mall development, developers have committed to provide rental concessions. The return to normalcy will be determined by the ability of the shopping mall developments to design step-up hygiene-enhancing measures,” Cushman & Wakefield said.

The country’s biggest mall operators, SM Group, Ayala Malls, Megaworld Corp., Robinsons Land Corp. and Ortigas & Co., have earlier announced they will waive rent for all tenants in its shopping malls that are not able to operate.

Starting May 1, shopping malls in areas downgraded to general community quarantine (GCQ) can re-open non-leisure shops, as long as social distancing and stringent hygiene etiquette are observed.

As malls remain closed in Metro Manila, many have turned to e-commerce platforms to purchase groceries and other essential goods which are delivered straight to their homes.

Cushman & Wakefield said it expects robust demand for logistics facilities and warehouses this year, as “the COVID-19 pandemic presents increased demand for facilities to support e-commerce growth.”

“On the other hand, supply chain disruption due to designated checkpoints in Metro Manila is hindering the flow of goods and services and hampering the operations of manufacturing facilities outside of the capital,” it added.

Cushman & Wakefield has an optimistic outlook for the residential sector, saying “the sector is seen to remain resilient as consumers tend to hold out decision to invest in residential developments.”

However, the hotel industry may continue to see pain, as tourist arrivals plunge due to travel restrictions here and abroad.

“Decline in occupancy rates due drop in tourist arrivals to linger until threats associated with COVID-19 pandemic were lifted,” Cushman & Wakefield said. — Cathy Rose A. Garcia

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Robinsons Land goes digital to handle home buying inquiries

April 21, 2020 | 12:02 am [ bworldonline.com ]

ROBINSONS Land Corporation (RLC) is making it easier for buyers to purchase a property through its online facility.

As online transactions become the “new normal,” RLC is showcasing its high-rise residential developments through digital catalogs and virtual tours on its website (www.robinsonsproperties.com).

“Through this online facility, RLC aims to make home buying possible and convenient for property seekers, especially now that we are on enhanced community quarantine nationwide,” the company said.

For more information, interested buyers can also book an online meeting with a property specialist, send an e-mail to RobinsonsResidences.Marketing@robinsonsland.com, or message through RLC’s official online platforms on Facebook and Instagram.

“Unit reservations may be done from home by simply sending scanned copies of the required documents, government ID, and proof of online payment of reservation fee,” RLC said.

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AboitizLand offers contactless homebuying

April 14, 2020 | 12:02 am [ bworldonline.com ]

ABOITIZLAND, Inc. is now offering digital-based home buying options to clients amid the enhanced community quarantine due to the coronavirus disease 2019 (COVID-19) pandemic.

“During these times, it’s truly better at home. We recognize the urgency of owning a house in a safe and secure neighborhood, which is why we intend to make the buying process easier and more attainable for our clients,” AboitizLand CEO and President David Rafael said in a statement.

Interested buyers can view AboitizLand’s projects through virtual tours on www.aboitizland.com. They can also check out the unit offerings by requesting actual videos of the houses.

Home buyers can also consult with property specialists using video chat apps.

To book appointments, they can schedule an online presentation through Facebook, or send an e-mail at aboitizland@aboitiz.com.

Reservations can also be made online. Home buyers can e-mail scanned copies of the reservation agreement, include one scanned or photographed copy of a valid government ID, and proof of online payment of reservation fee.

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Shareholder nod needed in 51% asset sale — SEC

April 15, 2020 | 12:04 am [ bworldonline.com ]

By Denise A. Valdez, Reporter

CORPORATIONS planning to sell 51% of assets and properties will now require stockholder approval, based on new rules by the Securities and Exchange Commission (SEC).

The corporate regulator has issued Memorandum Circular No. 12 which sets guidelines for corporations disposing of properties and assets amounting to at least 51% of its total assets.

Such transactions will now be considered by the SEC as a sale of all or substantially all of corporate property and assets, and therefore will require the approval of stockholders representing at least two-thirds of the outstanding capital stock of the company.

Voting of stockholders will be done in a meeting specifically called for this purpose.

“The newly issued rules reinforce the protection afforded to minority investors by enabling them to better participate in the decision-making and promoting transparency to reduce the risk of abuse,” SEC Chairperson Emilio B. Aquino said in a statement yesterday

The rules cover not only one-time transactions, but also multiple transactions within one year that would reach 51% of a company’s properties and assets. In such cases, the approval of stockholders will be obtained upon the last transaction that would breach the 51% threshold.

To measure whether a transaction or series of transactions are worth 51% of a company’s assets, the SEC will use the total assets of a company as indicated in its latest audited financial statement.

“We will continue spearheading corporate governance reforms, as part of our commitment to contribute to the inclusive development of the country’s economy through the introduction of reforms that protect minority investors,” Mr. Aquino said.

When the SEC released a draft circular on this rule in February, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said it may have little impact to investors as the minimum public ownership requirement is 10%.

“[Even if] you require a two-thirds vote, it’s still the major shareholders or the majority owner who decides the outcome,” he said then.

But for Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the SEC memo is a good step forward in giving power to minority investors.

“It should bode well for shareholders in general since they require the approval of the minority as well,” he said in a mobile message on Tuesday.

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PHL office sector to benefit when BPOs bounce back after virus

April 6, 2020 | 6:38 pm [ bworldonline.com ]

By Denise A. Valdez, Reporter

THE office space sector is seen to show some resilience amid the coronavirus disease 2019 (COVID-19) pandemic, as the business process outsourcing (BPO) industry is expected to grow once more after the crisis ends.

Real estate service provider Santos Knight Frank, Inc. sees the Philippines benefiting when foreign companies turn to outsourcing to reduce costs post-COVID-19.

“Global companies will be outsourcing more as a way of cutting down on costs. This will spur demand for the BPO industry in the Philippines, which continues to be attractive because of the country’s competitive costs and young talent,” Santos Knight Frank Chairman and Chief Executive Officer Rick M. Santos said in an online media briefing on Monday.

He noted it is difficult to rely on Philippine Offshore Gaming Operators (POGOs) to drive up demand in the office segment for now, as the POGO sector, which is largely powered by Chinese workers, takes a hit from the suspension of flights between the Philippines and China.

Santos Knight Frank expects new office buildings in Metro Manila to fall to 810,00 square meters (sq.m.) this year from its initial projection of 1.18 million sq.m. Vacancy is also seen to rise to 10% from 5% in 2019.

Once the situation normalizes, the firm said tenants will start “value-hunting,” or searching for attractive lease terms across the Philippines.

“We saw examples of that with call centers from India post-Global Financial Crisis… So we do expect to see that, and we do forecast that there will be an adequate amount of office space either currently on the market or under construction now,” said Morgan McGilvray, Santos Knight Frank senior director for Occupier Services & Commercial Agency.

“As we all know, for the BPO sector, the lower the cost, the better for this market. So if rents are going down, if operating costs are going down, that’s actually an opportunity to have bigger, better presences in the Philippines as opposed to other BPO sectors around the world,” he added.

Aside from the office segment, the industrial and logistics sectors are also seen to be resilient both during and after the virus outbreak, as the production and delivery of goods are continue during the lockdown period.

The growth of e-commerce, as heightened by the lockdown period, is also expected to drive up the need for industrial and logistics spaces to support an increase in demand from online customers.

Health care-related properties are likewise seen to attract new investors once the crisis is over, as people all over the world are expected to be more health-conscious after the COVID-19 pandemic.

And overall, property owners across all real estate segments are expected to provide higher importance to property and facility management given the increased expectations from buyers and tenants.

“Landlords and developers should implement sustainable and wellness-oriented developments and international best practices as tenants become more conscious of the impact of real estate on the health of their employees,” Mr. Santos said.

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Realty office opens in Ortigas

March 31, 2020 | 12:01 am [ bworldonline.com ]

GLOBAL REALTY COMPANY Keller Williams (KW) continues to expand in the Philippines where it currently has nine sub-franchises.

“When employees are compensated as much as what the company earns, they work towards a unified goal that results to increased productivity and success,” KW Philippines Regional Director Marla V. Naňadiego said in a statement.

In 2017, KW expanded in Asia, including in the Philippines.

KW Ortigas — 27C Realty, owned by Pauline Orillosa, recently opened its office at Robinsons Galleria.

“We need more brokers and sales agents to join our team to train, to handle our listings, and to grow with us,” she said.

KW agents undergo training and are given access to the company’s proprietary software that “assists in tracking clients or listings with ease, streamlining the selling process, and providing a wider network reach.”

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Microstudio developer waives minimum lease requirement

March 31, 2020 | 12:03 am [ bworldonline.com ]

Point Blue’s microstudios are available for single or double occupancy with prices ranging from P13,200 to P15,000 a month, inclusive of a high-speed internet connection. -- COMPANY HANDOUT

By Denise A. Valdez

Reporter

MICROSTUDIO DEVELOPER Point Blue is waiving its minimum lease requirements to help those in need of a place to stay while Luzon is under quarantine.

The company said in a statement it is now allowing new and existing tenants to pay a minimum rent of one month for units, from the previous lease requirement of a minimum of three months.

“Typically, developers charge more for shorter leases, since it’s more difficult operationally. In our case, we made the decision to keep our pricing the same. Our priority was to provide a solution for people who need it,” Point Blue Chief Executive Officer JR Yujuico said in an e-mail to BusinessWorld.

Point Blue has a total of 750 microstudios in its six buildings so far: 400 microstudios in four buildings near Bonifacio Global City and 250 microstudios in two buildings in Makati City. Each microstudio is fully furnished with one bed and a private bathroom.

Since the government announced the lockdown in Metro Manila on March 12 initially, Mr. Yujuico said Point Blue has received “an unusual amount of inquiries” for short-term leases. This prompted the company to remove the three-month minimum lease requirement as “it became increasingly obvious that people were in need.”

The entire island of Luzon is now under enhanced community quarantine until April 12, as the government tries to contain the spread of the coronavirus disease 2019 (COVID-19).

Point Blue’s microstudios are available for single or double occupancy with prices ranging from P13,200 to P15,000 a month, inclusive of a high-speed internet connection.

The company is targeting to develop 3,000 microstudios in Makati by 2022 in partnership with AboitizLand, Inc. Before the COVID-19 outbreak, Mr. Yujuico said the company was on track to open a new building every one to two months.

However, the increasing number of COVID-19 cases in the Philippines has forced the company to stop work on 11 buildings, each in different stages of design and construction.

“What’s for sure is that during this time, it’s difficult to think about growth. We need to plan for every scenario and make sure our company can look after our Point Blue community,” Mr. Yujuico said.

“Our business does have a solid foundation and I do think we are well-positioned to expand even further in the longer term. In the immediate term, we are in full support of the government’s measures to address COVID-19 and keep our communities healthy,” he added.

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Rules on tax deadline extensions released

April 3, 2020 | 12:31 am [ bworldonline.com ]

PHILIPPINE STAR/KRIZJOHN ROSALES

THE Bureau of Internal Revenue (BIR) extended the deadline for the filing of all tax returns, tax payments and submission of documents as the country remains under a state of national emergency due to the coronavirus outbreak.

BIR released Revenue Regulations No. 7-2020 which provides the guidelines for the implementation of Section 4(z) of the Republic Act No. 11469 or “Bayanihan to Heal As One Act” which gave the President the authority to “move statutory deadlines and timelines for the filing and submission of any document, the payment of taxes, fees, and other charges required by law” as the country is under a state of national emergency.

“By moving the statutory and regulatory deadlines for tax compliance, we ensure that taxpayers would be able to fulfill their patriotic duty of paying taxes without any risk to their health and safety,” Finance Secretary Carlos G. Dominguez III was quoted as saying in a statement.

The BIR earlier extended the deadline for filing and payment of annual income tax returns (ITR) for the calendar year 2019 to May 15, 2020 (Friday) from April 15, 2020.

With the new guidelines, the deadlines of the following, which fall during the national emergency period, have also been extended by 30 days from the original date:

• electronic and non-electronic filing and payment of quarterly ITRs;

• monthly and quarterly value-added tax (VAT) declarations;

• documentary stamp taxes (DST);

• percentage tax on winnings and prizes withheld by race track operators;

• withholding taxes on compensation; creditable and final withholding taxes; and

• monthly excise tax declarations.

For instance, the non-electronic filing and payment of VAT declarations for the month of February is now due on April 20, while the electronic filing deadline is from April 21-27 (depending on the group). Quarterly VAT declaration filing and payment for fiscal quarter ending Feb. 29 is now on April 27.

The BIR also extended the deadline of submission by 30 days for the following:

• quarterly summary lists of sales and purchases (new deadline: April 27);

• sworn statement of manufacturers or importers of excisable products (April 27);

• financial statements for the year 2019 (April 30);

• inventory lists (April 30);

• e-Sales reports (May 11);

• summary lists of machines (May 15);

• list of medical practitioners (May 15);

• certificates of residence for tax treaty relief (April 30);

• registration of computerized books of accounts and other accounting records (April 30).

• The deadline for the filing of applications for VAT credit and refund claims covering the quarter ending March 31, 2018 will now be on April 30, instead of March 31.

Submission of tax amnesty on delinquencies returns will be accepted until May 23.

“Additionally, settlement of one-time transactions, submission of assessment-related documents, and other filings and submissions not enumerated in the revenue regulations are given a 30-day extension, counted from the original due date,” the BIR said.

In case the new deadline falls on a weekend, the BIR said the deadline will automatically be the next business day.

Aside from moving the deadlines for tax compliance, RR No. 7-2020 also suspended the running of the statute of limitations on assessment notices, warrants of distraint and/or levy, and warrants of garnishment, by 60 days from the lifting of the state of national emergency.

“The extension of deadlines under RR No. 7-2020 applies nationwide while the country is in a state of national emergency,” BIR Commissioner Caesar R. Dulay said in a statement.

In a separate advisory, Mr. Dulay said taxpayers should disregard the penalties that will be displayed on BIR’s online facility eFPS for the meantime as it “automatically compute penalties for late” returns and payments.

“Taxpayers are advised to disregard the penalties computed by the system and pay only the basic tax due, provided that the payment shall be made on or before the extended deadline,” Mr. Dulay said. — Beatrice M. Laforga

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