Beruflich Dokumente
Kultur Dokumente
Philippines
March 25 - 31 | 2014
ECONOMY
Despite rising credit to the property sector, there has been no indications yet
of an asset-price bubble forming in the countrys real estate market, an official
of the International Monetary Fund said. One of the issues of the central bank
is to produce a real estate price index and that is still in development, Rachel
van Elkan, IMFs mission chief to the Philippines, said in a briefing. But the
indication that we have is there is no evidence of a bubble, she added. What
we do see is a significant amount of activities happening in sector credit so
this bears watching, Van Elkan said. Latest Bangko Sentral ng Pilipinas data
showed local banks exposure to the property sector amounted to P900.1 bil-
lion as of end-June last year, up seven percent from the first quarter of 2013.
Real estate loans climbed seven percent to P762.5 billion, while investments in
real estate securities increased eight percent to P137.7 billion.
FOR LEASE
6,000 square meter total of BPO space
Supported by 24/7 retail establishments and malls
surrounding the project SM Megamall, Shangri-La
Plaza and Starmall)
Located along Epifanio Delos Santos Avenue (EDSA)
Very accessible via various transport systems. MRT and
bus station just meters away from the building
With available spaces for recruitment for major tenants
RFO 3Q2014
INVESTMENT Robinsons Cyberscape
Sales drive retail firms profits Beta
Business World, 03.27.14
Puregold Price Club, Inc. the listed firm that holds all retail interests of Tycoon
Lucio L. Co. grew profit by nearly half last year on the back of strong sales, the
company said. Net income after tax climbed 46% to P3.96 billion last year from
P2.72 billion in 2012, as consolidated net sales grew 27% to P73.18 billion from
P57.47 billion in the same periods. The 27% growth in consolidated net sales
was essentially due to the huge sales turnover of the 150 Puregold and six S&R
stores operating as of the end of 2012, as well as the sales contribution of the
new 40 Puregold and two S&R stores opened in CY 2013 and the 15 Company
E stores acquired in the first quarter of 2013, the statement read. Puregold
ended last year with a total store count of 213 Puregold and S&R outlets.
P. 2 | COLLIERS INTERNATIONAL
Megaworlds Mactan township project to generate 45,000 jobs
Megaworld Corp. of property tycoon Andrew L. Tan will help facilitate the creation of about 45,000 jobs in the Queen City of the South through
its flagship township project. In a disclosure to the stock exchange, the real estate developer said it expects to generate around 45,000 jobs in
its 28.8-hectare Mactan Newtown mixed-use project in Lapu Lapu City in the next five to seven years. The company is fast-tracking the con-
struction of its state-of-the-art office towers to boost more employment in Cebu, particularly in Mactan Island, the firm said. Megaworld First
Vice President Jericho P. Go said the company is building five to 10 more office towers in the township by 2021 to reach the target of 150,000
square meters (sqm) of office space inventory. Megaworld is the countrys top developer of business process outsourcing (BPO) space.
Property giant Ayala Land Inc. (ALI) has secured a portion of the 2,000-hectare property of IRC Properties Inc. in Binangonan, Rizal. The
property will be developed into a housing project of ALIs low-cost housing brand Amaia, officials said. Amaia Land Corp. president Ricky M.
Celis said ALIs Strategic Landbank Management Group has purchased the 20-hectare lot as part of the transaction with IRC Properties. ALI
president and CEO Antonino T. Aquino said Amaia will put up housing units in property. Last year, ALI started negotiations with the Pea Sy
familys IRC Properties, which owns about 2,200 hectares of land in Binangonan. IRC Properties is the company behind the Sunshine Fiesta
community project in Rizal province. In September, IRC Properties sold a 183,729-square-meter portion of its vast property in Southern Luzon
to Filipino-Chinese developer Hundred Lake Development Corp. for P87.27 million.
Megaworld Corp., the Philippines builder controlled by billionaire Andrew Tan, plans to spend at least $5 billion in the next decade to develop
properties for the nations expanding outsource-services industry. The Southeast Asian countrys top office supplier for companies from
Accenture Plc. to Convergys Corp. will develop 10 townships dedicated to business-process outsourcing (BPO), tapping into demand thats
barely scratched the surface, said Jericho Go, a first vice president at Megaworld. Revenue at BPO companies in the Philippines may climb
61 percent to $25 billion in the next three years, accounting for 10 percent of the global industry, according to the countrys Information
Technology and Business Process Association of the Philippines (Ibpap). Demand will continue to be robust, said Julius Guevara, head of
research at the Philippines unit of Colliers International Plc. Outsourcing to the Philippines remains attractive because of the lower costs, and
the recent weakness of the peso supports this demand. Slower economic growth and a weakening property market are potential risks for
shares of Philippines developers, according to Macquaries Pomento. The firm has an outperform rating on Megaworld, with a 12-month price
target of P5.10. Land prices in some parts of Manila have jumped 28 percent in the past three years, according to Colliers. The Philippines
central bank on Thursday ordered lenders to set aside more money as reserves to curb liquidity.
Upscale property developer Rockwell Land grew its net profit last year by 25 percent to P1.4 billion on higher revenues from residential devel-
opment as well as earnings from its commercial portfolio, which includes the Power Plant Mall and Rockwell Business Center. As an indicator
of future revenue growth, Rockwell reported strong demand for the first three Proscenium towers and The Grove by Rockwell in Pasig City,
translating to P12.6 billion in 2013 reservation sales, 37 percent higher than the level a year ago. The growth in reservation sales was also
fueled by the nearly 100 percent sales take-up of the 205 Santolan, the Edades Tower and Garden Villas and the Alvendia projects, Rockwell
reported.
IT-BPO
The Philippines is under mounting pressure to retain its number one rank in the global call center industry. There are two main success driv-
ers: the first is highly qualified management that pays fixed attention to boosting call center efficiency and streamlining expenses while also
boosting income at the same time. That, coupled with next generation IT solutions, enhances performance by automating all major business
processes, explained Noda CEO Andrey Zaitsev. For one thing, call centers workers need better educational support to serve current accounts
and accommodate future market needs, as part of the roadmap of the sector. Inasmuch as the types of calls the contact center agents receive
now differ vastly from what they used to answer more than a decade ago, as early as possible, employees skill sets must be reinforced to
avoid a mismatch between the knowledge acquired from formal education and the requirements expected by the customers.
P. 3 | COLLIERS INTERNATIONAL
RETAIL
Century Properties Group Inc. has jumpstarted its diversification into other income channels with the formal opening of Century City Mall, its
flagship retail development expected to generate P100 million in annual income for the group. [Century City Mall] mall should generate P100
million annually once its stabilized, said Century Properties Co-Chief Operating Officer Jose Marco Antonio. The boutique shopping mall tar-
gets the AB market, allowing the property firm to secure P250 million in additional yearly revenues, Antonio said. Century Properties formally
opened yesterday the P1.4-billion Century City Mall, the companys first retail project located in the masterplanned Century City in Kalayaan
Avenue, Makati. The five-story mall has a gross floor area of 50,000 square meters (sqm) and 17,000 sqm of net leasable space. Century City
Mall General Manager Graham Coates said there are 68 stores already in operation while 20 more shops will open next month. In every brand,
there is a slight twist in terms of brands or merchandise sold, Coates said. In total, 110 retail establishments will operate in the shopping mall,
65 percent of which are non-food, with rent at P900-1,000 per sqm.
Roxaco Land Corp. and Singapore-based Vanguard Hotels Pte. Ltd. are putting up at least 1,000 budget hotel rooms in the next two years.
The partners, through budget hotel chain Go Hotels, are taking advantage of the strong growth of the local tourism industry, Roxaco Land said.
Roxaco Land and Vanguard Hotels are looking at delivering at least 1,000 hotel rooms in two years in their joint venture to build affordable
hotels in Metro Manila, the company said. Late last year, Roxaco Land, a subsidiary of listed Roxas & Co. Inc., partnered with Vanguard to
build at least five new Go Hotels, the budget hotel chain of Robinsons Land Corp. Roxaco-Vanguard Hotel Corp. already started work on its
initial hotel, the Go Hotel Manila Airport Road located near the Ninoy Aquino International Airport (NAIA). Both parties are committed to
completing the five hotel projects, which would deliver at least 1,000 hotel keys, within the two-year timeframe, said Roxas & Co. chairman
and CEO Pedro E. Roxas.
The two biggest Philippine carriers and Japans All Nippon Airways (ANA) will simultaneously launch new routes between the two countries
in a strong push to draw in more Japanese tourists. Philippine Airlines (PAL), Cebu Air and ANA, Japans largest airline by passengers, will
introduce new Philippine-Japan routes that will increase the number of flights to 81 per week from the previous 56. Flag carrier PAL will add
twice daily flights to Tokyo-Haneda, returning the same day, to its existing Tokyo-Narita, Fukuoka, Nagoya and Osaka routes. Budget carrier
Cebu Air, the operator of the Cebu Pacific brand, will start direct flights from Manila to Narita daily and four times a week to Nagoya, beefing
up its daily Manila-Osaka route. Meanwhile, ANA, which has been operating for three years in the Philippines, will fly to Tokyo-Haneda daily
to complement its existing service between Manila and Tokyo-Narita. ANA will also be deploying the first Boeing 787 Dreamliner, one of the
worlds biggest passenger aircraft, to the Philippines. The additional routes and the participation of the major carriers prompted the Depart-
ment of Tourism (DOT) to expect a 20- percent growth in the number of Japanese tourists going to the Philippines this year.
INFRASTRUCTURE
The Department of Transportation and Communications (DOTC) gave the green light to B.M. Marketing owned by businessman Edgar Tiu to
undertake the P42.5 million rebuilding of the Daniel Z. Romualdez Airport in Tacloban City. The DOTC allotted P43.63 million for the Tacloban
airport rehabilitation project through a negotiated procurement on emergency cases allowed under the revised implementing rules and regula-
tions of RA 9184 or the Government Procurement Reform Act. The DOTCs negotiating team invited 10 contractors but only four groups sub-
mitted their eligibility documents as well as technical and financial proposals for the project. Out of the four contractors, only BM Marketing
was found to have complied with all the eligibility, technical, and financial requirements for the project, thus its offer was declared as the single
calculated offer, the DOTC Undersecretary Julianito Bucayan Jr. said.
P. 4 | COLLIERS INTERNATIONAL
GENERAL PROPERTY
Another obstacle to the proposed P6-billion property development project of Ayala Land, Inc. here was cleared after the Land Registration
Authority (LRA) upheld the denial of the adverse claim of SM Prime Holdings, Inc. to the property. The LRA ruling came about two months
after the Regional Trial Court (RTC) here junked SM Primes petition to annul the negotiated sale and lease of the 7.7-hectare provincial gov-
ernment property to Ayala. This is not the last obstacle yet as SM has appealed the denial of its petition, said Negros Occidental Governor
Alfredo G. Maraon, Jr. The provincial government and Ayala signed, shortly after a negotiated bidding in July 2011, contracts allowing Ayala
to purchase from the provincial government 3.6587 hectares (ha) of land worth P750 million and lease 4.0481 ha at P2.95 million a month.
10F Tower 2 RCBC Plaza | Ayala Avenue, Makati City | Philippines 1226 | (02) 888 9988 Main | (02) 845 2612 Fax
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