PROPERTY giant Megaworld Corp. is increasing its capital spending for its office inventory in Fort Bonifacio as it launches another development in the area.
The developer announced it is building a new high-rise office tower in its 34.5-hectare Mckinley West township in Fort Bonifacio to be called 10 West Campus.
The 17-story high 10 West Campus is set to add 32,000 square meters of leasable office spaces into the said township.
In a press briefing on Wednesday, Megaworld Senior Vice President Jericho Go said the company is increasing its capital spending for office towers in Fort Bonifacio by 15 percent to P23 billion to expand its office inventory in the area to nearly 700,000 square meters by 2019.
Last year, Megaworld said it was allocating P20 billion for office space development in its various townships in Fort Bonifacio as part of the goal to grow its office space inventory in the area to 650,000 square meters by 2018.
The additional P3 billion in spending for Fort Bonifacio office inventory will be spread out until 2019 but “the capex we announced remains the same,” a company official said.
The Mckinley West township was initially set to offer 66,000 square meters of leasable space with its six campus-type office towers. These are the One West Campus, Two West Campus, Three West Campus, Five West Campus, Six West Campus and Eight West Campus.
“We are upbeat about Mckinley West because this township stands at a very premium location right beside Forbes Park and has a convenient, fast access to Makati CBD, C5 Road, South Luzon Expressway and the Ninoy Aquino International Airport,” Go said.
Aside from the 13 floors of office spaces, 10 West Campus will also feature three floors for podium parking, and a ground for retail and recruitment centers for BPO tenants.
Go said the development of 10 West Campus will account for around P2 billion of the additional capital spending budget, or 60 percent to 70 percent of the budget increase.
The new office tower is set to be completed between late 2017 and early 2018.
At present, Megaworld noted that its six-campus type office towers area already 70 percent pre-leased to mostly business process outsourcing (BPO) and information technology (IT) companies. Megaworld said it expects all of the campus-type office towers to be fully leased by the second half of the year.
Megaworld also noted that almost a quarter of the new 10 West Campus units has already been pre-committed.
Within the next two years, the company will have more than 30 office towers in Fort Bonifacio alone.
Go said the firm is looking to hit one million square meters of office inventory nationwide in 2018.