National elections aside, 2016 will be a busy and exciting year for the Philippines’ largest real estate developers
The year 2015 was a big one for Philippine real estate: we saw the rise of new townships, mixed-use developments, and business process outsourcing offices in and out of several metro cities, proving that the real estate sector was a huge factor in the improvement of the national economy. Now that a new year has arrived, the country’s biggest developers are preparing for development launches and coming up with more projects that could indicate a promising 2016.
It was announced last year that Megaworld will be launching more projects in 2016. Three new residential towers in Makati City are expected to rise to further add to their portfolio of more than 25 office and residential towers in the country’s prime financial city. According to Jericho Go, the company’s senior vice president for business development and leasing, they will be building at least 100,000 square meters of office space in 2016.
Megaworld’s 31-story residential tower Greenbelt Hamilton, located a few minutes away from the Greenbelt Mall, is scheduled for completion this year. Also to be expected this year is the construction of its newest integrated, master-planned townships in Iloilo, Bacolod, and San Fernando. The company’s newest mall, Festival Walk Mall situated in the Iloilo Business Park, is touted to become the longest avenue for shopping, dining, and leisure when completed in late 2016. Southwoods Mall of Southwoods City, Laguna, is also set to open this year.
Nuvali in Laguna has a wakeboarding park. (Photo via nuvali.ph)
It was reported last year that Ayala Land may spend up to Php90 billion in 2016 to stay on track with its six-year target. Ayala Land Chief Finance Officer Jaime Ysmael stated that this year would see the launch of new malls, hotels, and offices as the company plans to focus on and double their leasing income. Ayala Land plans to expand its portfolio in places where it already has existing projects (such as Cagayan de Oro, Bacolod, Makati, Quezon City, Cebu, and the Nuvali township in Laguna), and in the process balance its commercial sales and development income.
Something to look forward to this year is Ayala’s concrete plan to take over the iconic hotel, InterContinental Manila in Makati, which stopped its contract and operations in the last day of December 2015. Ayala will reportedly put up a new commercial and mixed-use development on the site as part of its redevelopment master-plan of the Ayala Center. This project is expected to change the face of the Makati central business district.
Ayala Land was also the top bidder for the new Integrated Transport System-South project (ITS-South) to be built near Manila–Cavite Expressway, the construction of which will commence this August.
Along with its sister firm Manila Water, Ayala Land has also signed a memorandum of agreement for the supply of water and used water for all their real estate assets across the nation. The memorandum of agreement was signed by Ayala Land and its subsidiaries and affiliates Cebu Holdings Inc. and Cebu Property Ventures and Development Corp.
Filinvest Land has partnered with the Bases Conversion and Development Authority to develop 288 hectares of land for what will be another integrated township: Clark Green City. The development is similar in size to Bonifacio Global City in Taguig and bigger than Makati’s central business district. It will be separated into two: an industrial zone and a mixed-use development with office, commercial, residential, and educational elements. As the first developer to be in partnership with BCDA, Filinvest will not only plan but will also finance and market the project. The groundbreaking will happen in the first quarter of this year.
To expand their residential, office, and retail projects, Filinvest has earmarked over Php20 billion, aiming to triple its office and leasing portfolio in the next five years. For residential projects, Filinvest will focus on offering developments to starting families and end-users. Construction of these projects is currently ongoing, including the 40-story Filinvest City residential condominium named Bristol, which will be the tallest tower in Muntinlupa.
The Robinsons Mall in Ilocos Norte. (Photo via robinsonsmalls.com)
Recording a higher income in 2015 than the previous year, Robinsons Land has set a capital expenditure (CAPEX) of Php17 billion for this year. Fifty-four percent of that CAPEX will spent on malls, office buildings, and hotels, and 25 percent will be invested into residential units. The remaining 21 percent will be used for land acquisition.
Targeting to open 10 new malls mostly in areas outside Metro Manila by 2017, the country’s second largest mall developer is planning to open five new malls this year: one each in Cebu City, Iligan City (Lanao del Norte), Jaro (Iloilo), Tagum City (Davao del Norte), and General Trias (Cavite). Expansions are also in the pipeline for its existing malls in Ilocos Norte and Tacloban City. The company plans to open three to five malls annually to further ramp up their leasable space.
Robinsons Land is also set to build two identical towers in Bridgetowne—its new mixed-use township in the C5 Corridor in Quezon City. The 20-story twin towers Exxa and Zeta are set for groundbreaking in the near future. These two towers will eventually have 35,000 square meters of leasable office space each, and will be connected by a commercial podium containing dining, retail, entertainment, and service establishments.
Aerial shot of SM Megamall and the Ortigas skyline. (Photo via facebook.com/smmegamall)
Proving their success time and time again, SM Prime was hailed as the Best Real Estate Developer – Retail in the Philippines for the third time by Euromoney Magazine. Showing its aggressiveness in all real estate facets, 2016 will be another abundant year for SM Prime.
Just last year, SM Prime opened the largest mall in Visayas and Mindanao. Named SM Seaside City Cebu, this new mall designed by famed architectural firm Arquitectonica boasts close to half a million square meters of leasable space, and 2016 will see the increase of numbers of tenants. Seaside Tower, a 147-meter viewing tower, will rise at the center of this huge mall.
An S-shaped office tower adding 124,200 square meters of leasable floor area is soon to rise near SM Megamall in Ortigas Center. Named SM Megamall Tower, it will have a direct link to the mall and will have three levels of underground parking and above-ground parking.
To further boost their portfolio, it has been reported that SM Prime will reclaim 1,500 hectares in Cordova, Mactan Island, Cebu. The company will also launch a mall in Davao City, and will begin the construction of SM City in Legazpi City, the Bicol Region’s commercial and business center.
Evia Lifestyle Center in Las Piñas. (Photo via Vista Land's Facebook page)
According to Vista Land chairman Manuel Villar Jr., there will be no substantial change in the company’s CAPEX for 2016. Armed with Php25 billion, the country’s largest housing and subdivision developer will be busy building and redeveloping Vista Malls in Vista communities, including those in Antipolo, Cagayan de Oro, Pampanga, Makati, and Vista City. These malls are expected to be launched within the first quarter of 2016.
Vista Land is also set to acquire 989.76 million Starmalls shares from minority stockholders, which will increase the company’s stake at the mall developer by 29 percent and pushing it to Php159.9 billion. The final settlement will be made on February 25, 2016.
As 15 percent of Vista Land’s CAPEX for this year will be concentrated on Davao, 10 projects are to be launched this year in the province, as stated by Vista Residences president Maribeth C. Tolentino. Included here are the 175-hectare township in Toril, another project in central Davao City, and one in Tagum City.
To be anticipated in the metro are the continued development of the 40,000-square-meter Evia Lifestyle Center in Daang Hari, Las Piñas, and the 30-story residential tower Salcedo Square in Leviste Street in Salcedo Village, Makati.