JLL Philippines notes new office space developers, BCDA ties up with Japanese firms for Clark Green City, and more
Another round of Philippine real estate news comes your way as we bring you updates from March 6 to 12, 2016. Last week, Jones Lang LaSalle (JLL) Philippines revealed an increase in building activity from minor players in the office real estate industry, the Bases Conversion and Development Authority (BCDA) signed an agreement with Japanese firms for the development of Clark Green City, a prominent architect called on the government for support in inner-city and socialized housing development, and more.
JLL Philippines: New office space players are supporting BPOs
The local office space industry is seeing an increase in activity as new players compete with more established property brands in supplying the constantly growing BPO industry. According to real estate services firm JLL Philippines, BPO full-time employees are projected to grow from 1.2 million in 2015 to 1.3 million this year, which means an additional 400,000 sqm of office space will be needed to accommodate them. One such player is niche developer Panorama Development Corp., which has expanded its portfolio from residences and warehouses to offices, with 70,000 leasable spaces already constructed. Also showing activity are construction brand Wilcon Home Depot and retailer Mercury Drug. JLL’s Claro Cordero, however, warns office developers against oversupply to avoid vacancy.
Manila Bulletin; March 7, 2016
BCDA, Japanese firms take on Clark Green City master planning
BCDA recently signed a joint venture agreement with Japan Overseas Infrastructure Investment Corp. for Transport and Urban Development (Join) to create a master plan for Clark Green City, a 9,450-hectare project in Tarlac province. According to the agreement, BCDA will own 45 percent of the venture, while Join takes on the 55 percent majority share. The first step of the agreement will be the creation of a $2 million master plan that, according to BCDA president and chief executive Arnel Paciano Casanova, can result in the generation of employment and education opportunities.
Manila Standard Today; March 8, 2016
Palafox to government: Support inner-city dev’t, socialized housing
As a solution to the meager living conditions of the urban poor, Palafox Architecture president and founder Felino Palafox Jr. urged the government to focus on inner-city development and proper land use in urban areas instead of relocation efforts. Palafox added that there is a need for the proper appropriation of government lands, such as building sports and leisure facilities in military camps or housing for poor soldiers. He also believes that, with the country being constantly at risk of natural disasters, the government should build evacuation centers in every city. Further, Palafox sees that private developers can develop a total of 103,440 units of socialized housing if the government were to provide a Php30 billion grant in buildable land within Metro Manila.
Business Mirror; March 8, 2016
Megaworld allocates Php55B for 2016 spending
Andrew Tan-Led Megaworld Group announced recently that they will be spending Php55 billion for 2016, with a heavy focus on rental spaces such as office towers, malls, and commercial centers. The Group, composed of Megaworld Corporation and subsidiaries Global-Estate Resorts, Inc., Empire East Holdings, Inc., and Suntrust Properties, Inc.; will be launching a total of 14 office towers, commercial centers, and malls in townships such as McKinley Hill in Taguig, The Mactan Newtown in Cebu, and Arcovia City in Pasig. Moreover, 14 residential projects will be launched in various sites including Metro Manila, Iloilo, and Davao.
MyProperty.ph; March 11, 2016
RLC to launch Php16B in residential projects
Real estate brand Robinsons Land Corporation (RLC) announced in a recently held shareholders’ meeting that it is aiming to launch residential projects worth Php16 billion. One project to be unveiled is the 50-story Ortigas CBD tower Westin Residences, which is estimated to earn Php6 billion in sales. According to RLC president Frederick Go, the brand will launch each project by phase after an evaluation of the property market’s current conditions. He also added RLC’s plans to reach 55 stores by 2019 by launching three or four malls every year.
Manila Standard Today; March 11, 2016