LISTED green builder ArthaLand Corporation is set to spend P8 billion on the development of an office project in Cebu as the company expands outside of Metro Manila.
At a press briefing on Wednesday, ArthaLand president and chief executive officer Angela De Villa-Lacson said the company is set to launch an office building in Cebu, their first project outside of Metro Manila.
The project, to be named Cebu Exchange, is a 38-storey office building that will be built on an 8,440-square-meter lot along Salinas Drive in the Cebu IT Park in Lahug Village, Cebu City. The land was acquired by ArthaLand last year.
Cebu Exchange will offer a total of 316 office units totaling 83,100 square meters of office space, which will cater to the growing business process outsourcing (BPO) industry.
“The P8-billion Grade-A office development is designed to address the IT and business process outsourcing industry’s growing demand for quality space,” ArthaLand said.
The project will also feature four floors of retail space measuring a total of 3,900 square meters.
Also, 10 floors of the building will be allotted for 945 parking slots.
Construction will be divided into two phases. The first phase will involve the lower part of the development: two basement parking levels, the Podium level from the 1st to the 8th floor for parking, retail units and the lobby, and the low zone form the 9th to 11th floor for office units.
The second phase will involve construction of the mid zone levels from the 12th to the 32nd floor, and the high zone levels from the 33rd to the 38th floor.
Completion of the first phase is slated in 2020 and the second phase in 2022.
The project will be developed through a 60-40 joint-venture with Hong Kong-based Arch Capital Management, with ArthaLand holding the controlling 60 percent stake.
De Villa-Lacson said their first foray into the Cebu market is driven by optimism on the prospects in the region.
“With the continuing market optimism on Visayas and Mindanao, ArthaLand sees robust opportunities, especially in the information technology and business process management sector,” De Villa-Lacson said.
She said they will be selling most of the office units of Cebu Exchange while around 10 percent of the development will be leased out, for a projected sales value of P11.5 billion.
ArthaLand is also aiming to make Cebu Exchange the first recipient of a dual green building certification under the U.S. Green Building Council’s LEED program and the Philippine Green Building Council’s BERDE certification programs in the VisMin region.
“To ensure resource efficiency for the building’s locators, Cebu Exchange will feature green elements such as efficient building envelope, water-efficient plumbing system, low-energy consuming air-conditioning system, efficient lighting system, use of low-emitting materials, and allocation for low-emitting and fuel efficient vehicle (LEFEV) parking,” ArthaLand said.
She said the initial plan for the Cebu project was to build two towers, but the company realized that building one tower would allow them to offer bigger spaces.
“We started with two towers so one tower at a time. And then we realized that it’s more efficient to just have one tower and we will be able to get bigger spaces. The BPOs, they want as big spaces as possible,” De Villa-Lacson said..