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Monday, January 5, 2015

Megaworld to expand office space leasing business

Megaworld's Iloilo business park perspective

Megaworld Corp is accelerating its office space launches within the next three to five years.

Megaworld senior vice president Jericho Go said the company is bringing to the market over 100,000 square meters of office space within its township projects.

"On an annual basis, we have set a minimum of 100,000 square meters [in terms of launches]. Hopefully by January after the corporate planning conference, we've bumped up our 100,000 to 150,000 or something better. Moving forward, that will be the trend," Go said during an interview before the holiday break.

Megaworld added 112,000 square meters to its office space portfolio to close 2014 with 712,000 square meters upon completion of Towers 1 and 2 in Uptown Bonifacio and of projects in Mactan Newton and Iloilo Business Park, according to analyst estimates.

Megaworld has launched roughly 60,0000 to 75,000 square meters of office space in the last 3-5 years, Go said, adding that its office projects in its township developments in Metro Manila as well as Cebu and Iloilo are mostly fully leased out.

Go said the take up of office space in recent years has been “phenomenal” with a lot of business process outsourcing (BPO) companies entering into pre-commitment deals with developers, something "unheard of in terms of office space."

"If they don't do that now, they will be left behind. It's possible that their competitors will be taking that space to begin with. If that happens they will be left fighting for limited space at a higher price. Prudence dictates ‘I sign up for this space now, I pay now and lock in the price,’" Go said.

Megaworld nearly tripled its earnings to P19.03 billion at end-September buoyed by an P11.62-billion non-recurring gain, strong residential sales in its various townships, and higher leasing income from its office and retail portfolio.

Megaworld is part of Alliance Global Group Inc, the holding firm for billionaire Andrew Tan’s real estate, consumer goods, quick service restaurants, hotel and gaming businesses.

- Interaksyon

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