PROPERTY firm Megaworld Corp. is spending P20 billion to build 12 office tower developments in Fort Bonifacio amid strong demand for office space in the emerging business and leisure hub south of Metro Manila
All 12 are mostly set for completion by 2018, said Jericho Go, Megaworld senior vice president.
In a press briefing, Go said that the company is seeing doubled office space inventory in Fort Bonifacio by 2018 to 650,000 square meters (sqm) from the present 300,000 sqms.
“We’re very confident that we will be fully leased out with the projects towards 2018 because of the demand we’re getting… By around 2017 to 2018, we’ll be already hitting our target of 1 million sqms of office space, and the 650,000 sqms or 60 percent to 70 percent of that is coming from Fort Bonifacio alone,” Go said.
“There’s an actual and real demand. From a rental rate percent, the highest yield is in the Fort Bonifacio area. But we’re not solely focused here, we also have [existing and upcoming]office projects in other areas like Luzon, Cebu, Iloilo, Bacolod and Davao,” he added.
The 12 office towers will emerge in three Megaworld townships in Fort Bonifacio — four in the 14.5-hectare Uptown Bonifacio, six in the 34.5-hectare McKinley West, and two others somewhere in the area which is still under planning stage.
All of the buildings are LEED certified, Go said, meaning a greener and more efficient use of energy for the office towers.
The four office buildings in Uptown Bonifacio include the Uptown Tower 1 and 2 which are both 15 floors high; the 20-storey Uptown Tower 3, and the 25-storey Alliance Global Tower which will serve as corporate headquarters of Alliance Global Group Inc’s (AGI) subsidiaries.
AGI is Megaworld’s parent company led by tycoon Andrew Tan.
These four towers equate to 150,000 sqms in office space portfolio, which is already 90 percent leased out and contracted to date. Tenants are about 70 percent from the business process outsourcing (BPO) sector while the rest comes from other industrial companies like Colgate, Palmolive, 3M, Del Monte, Canon, and Holcim.
Go said Uptown Towers 1 and 2 are set for delivery within this year, while Uptown Tower 2 will be completed next year.
The other six “campus-type” office towers to rise in McKinley West are the One West Campus, Two West Campus, Three West Campus, Five West Campus and Six West Campus and Eight West Campus. These campus-type buildings only stand five levels high, generating 10,000 sqms of leasable office spaces each.
Campus-type offices in demand
“There is a lot of demand in these five-storey campus-type offices among clients because it is cost-efficient compared to the normal high-rise office buildings,” Harold Geronimo, Megaworld’s head of Public Relations and Communications, said in the same briefing.
Still in the planning stage, the two more office towers in Fort Bonifacio will add 140,000 sqms more to Megaworld’s office space inventory.
The P20-billion budget for the 12 office towers in Fort Bonifacio is well within the firm’s P285.8-billion programmed capital expenditures from 2015 to 2019. Around P65 billion of the five-year capex is set to be utilized this year.
In the first three months of the year, Megaworld’s net income climbed by 12.48 percent to P2.35 billion from P2.09 billion a year earlier.
The company’s notable townships include 18.5-hectare Eastwood City in Quezon City; 50-hectare McKinley Hill, 34.5-hectare McKinley West and 15.4-hectare Uptown Bonifacio.
The Tan-led developer owns 100 percent of Suntrust Properties Inc., 75 percent of Global-Estate Resorts Inc., 82 percent of Empire East Land Holdings Inc. among other holdings in 30 other subsidiaries.
Megaworld is a property vehicle of Tan’s holding firm AGI, which also owns and operates Emperador Inc., McDonalds local franchisee Golden Arches Development Corp. and Resorts World Manila operator Travellers International Hotel Group Inc.