The local property developer is also fast becoming a jolly green giant in LEED construction.
From left: Megaworld strategic marketing and communications director Harold C. Geronimo and first vice president Jericho Go
Local real estate developer Megaworld Corporation announced their intent to add around 112,000 square meters of office space to Uptown Bonifacio in Bonifacio Global City (BGC), The Mactan Newtown in Cebu, and Iloilo Business Park this year. During a press briefing held recently, the developer revealed that this expansion will ramp up the company’s office space portfolio to 712,000 square meters, bolstering their position as the leading office developer and landlord in the country.
The increase will be spread across developments in 6 new towers: 30,000 sqm each in Uptown Tower 1 and 2 in Uptown Bonifacio; 30,000 sqm in 8 Newtown Office Tower and 7,000 sqm in Two World Center in The Mactan Newtown; and 10,000 sqm in IBP BPO Building A and 5,000 sqm in Richmonde Office Tower in the Iloilo Business Park.
Driven by demand
According to Megaworld, 126 companies are leasing their office spaces nationwide, and 87% of their business tenants are in the business process outsourcing (BPO) sector. They also expect that 65% of their income will be coming from the BPO office leasing side.
“As we continue to build more state-of-the-art, environment-friendly office towers, we hope to help grow the country’s BPO sector by encouraging more companies to come and operate in the Philippines,” Go said, who shared that business tenants in their new office spaces will be a mix of new and current occupants.
Go also mentioned that a substantial part of the additional leasing spaces in Uptown Bonifacio and The Mactan Newtown have already been precommitted, with expectations that IBP Building A will be taken up within the year.
Colliers International Research representative associate director and head of research and consultancy Julius Guevarra was on hand to lend data indicating Megaworld as the top office space provider in the Philippines with a 23% market share.
"As you can see, the basis for us having accelerated and continue to commit a minimum of 100,000 square meters per year is largely a factor of demand. There is demand, and I think the Colliers report also lends credence to that because there's a… 4% vacancy, which is actually very positive on the part of a developer like Megaworld," he explained
Taking the LEED in eco-friendly design
Megaworld also took care to mention that the two office towers to rise in McKinley Hill have already been certified by LEED (Leadership in Energy and Environmental Design). This move, according to Go, was fueled by both environmental and business factors.
"First, we want to do our share in reducing the carbon footprint, and that's a conscious decision on the part of the Megaworld management. And the second is we need to align with global standards. We have the expertise, we have training, and we have the manpower for that, so I think that's another key advantage for Megaworld Corporation as a developer."
"We want to do our share as a company into going into LEED development. And as a consequence, we are able to broaden our customer base, especially those that are limited to taking just LEED buildings," he added.
Residential condo takeup
Asked how this expansion will affect occupancy rates of residential condos in the said townships, Megaworld offered a bullish outlook, especially with their forecast that the completion of these additional office spaces will create 60,000 jobs within the next five years.
“We definitely anticipate an uptick in the demand for our residential condo units as we add more office buildings in our townships,” Megaworld strategic marketing and communications director Harold C. Geronimo expressed. “BPOs are drivers of growth for our residential segment especially since we create communities where people can live, work, play and even learn at the same time all in one place.”
To date, Megaworld has already completed 26 corporate office towers in the country – 10 in Eastwood City, 14 in McKinley Hill, 1 in Newport City, and 1 in The Mactan Newtown.
McKinley Hill in BGC
One World Center in The Mactan Newtown, Cebu