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Philippines
June 17 - 23 | 2014
ECONOMY
Bangko Sentral Governor Amando Tetangco Jr. said the banking industrys
credit to the real estate sector remains manageable, but several banks may
be more exposed than others, in case the industry hits a downturn. Banks
with heavy credit exposure to real estate and weak capital base are consid-
ered vulnerable, in case of a downturn in the economy which can trigger loan
defaults, or if the property sector suffers from a sudden drop in prices. Real
estate is currently the fastest-growing segment of the economy, supported
by the growth of the business process outsourcing industry and remittances.
Tetangco, however, said the recently issued policy on real estate credit did not
indicate any imminent vulnerability among banks. He did not identify the banks
with high exposure to real estate risks, but said they would soon be tested to
determine their capability to handle such risks.
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
Century Properties unit secures $30 M funding Beta
The Philippine Star, 06.16.14
A wholly-owned unit of Century Properties Group Inc. (CPG) has secured $30
million in funding from a leading global private equity real estate fund manager
for its latest project within its flagship Century City development in Makati. In
a statement, CPG said Century City Development Corp. inked a $30 million
secured facility agreement with Golden First Century Pte Ltd., a company af-
filiated with Phoenix Property Investors. CPG said the money would be used
to partly fund the construction of the 60-story all-glass Century Spire, which
forms part of a 3.4-hectare masterplan seen to dramatically reshape Makatis
skyline. Century Spire is expected to bring to the market over 500 residential
units and 27,047 square meters of gross office space upon completion in 2018.
Primeiro Partners acted as Centurys financial advisor to the transaction.
P. 2 | COLLIERS INTERNATIONAL
Megaworld takes over resorts operator
FOR LEASE
Typical Floor - 1,363 sqm leasable, column - free
design for easier layout
Expected completion: First quarter 2016
Achievable density of 6 sqm. per person
Restaurants on the amenities floor at the 10F
Recruitment space and food options on the ground floor
Accessible via Julia Vargas Avenue and Jade Drive
P. 3 | COLLIERS INTERNATIONAL
Filipino consumers among worlds most conscious in buying preference
Filipino consumers are among the worlds most socially-conscious when it comes to purchasing goods and services. A new survey by Nielsen
revealed that an overwhelming majority of consumers check product packaging to gauge brands commitment to making a positive social and
environmental impact. The survey found close to eight in 10 domestic consumers are more willing to pay extra for products and services
that come from companies that are committed to making positive social and environmental impact, the highest globally, as are close to three
quarters of consumers in Vietnam (73%), third-highest in the world. We see the strongest propensity to buy socially and environmentally
responsible brands from consumers in emerging markets such as the Philippines, Vietnam and Thailand where consumers face extreme lev-
els of poverty and frequent encounters with natural and environmental disasters, said Stuart Jamieson, Nielsens Managing Director in the
Philippines.
Hyatt Hotels & Resorts and Melco Crown (Philippines) Resorts Corp. (Melco Crown Philippines) announced that a Hyatt affiliate and Melco
Crown Philippines have entered into a management agreement for Hyatt City of Dreams Manila, which will consist of two hotel towers and
is expected to open in 2014. We are thrilled to introduce the Hyatt brand to City of Dreams Manila, in support of Melco Crown Philippines
strategy to further develop and enhance the appeal of one of the regions fastest growing business and leisure destinations, Ratnesh Verma,
Senior Vice President, Real Estate and Development, Asia Pacific, Hyatt Hotels & Resorts, said in statement. Given the strong Hyatt brand
name and the hotels ideal location, we believe Hyatt City of Dreams Manila will attract both business leisure travelers, as well as meeting and
incentive groups, from across the region, said Clarence Chung, Chairman and President, Melco Crown Philippines.
Property developer LKY Group plans to open by yearend a portion of the redeveloped former Hilltop Hotel at the Freeport Area of Bataan
(FAB) in Mariveles town. A statement issued by the Authority of the Freeport Area of Bataan (Afab) quoted Wilbert Lee, President and Chief
Executive of LKY and The Oriental Hotels and Resorts, as saying that the soon-to-rise, four-star The Oriental-Bataan hotel would begin opera-
tions of its renovated clubhouse and a number of guest rooms on the ground level in December. The Oriental-Bataan is poised to become the
biggest tourist facility at the freeport, and forms part of the P300-million FAB leisure hub a lifestyle community to be developed by LKY over
a 129,170-square meter property. The project involves the rehabilitation of FABs tourism facilities which, apart from the existing four-story
Hilltop Hotel also include an auditorium, a clubhouse, a shopping center and sports facilities.
INFRASTRUCTURE
Aquino OKs P123-B Laguna Lake road dike, 2 other PPP projects
Finally, the much-awaited expressway dike project that would mitigate flooding in coastal communities along Laguna Lake has been green-
lighted for implementation. The P122.8-billion Laguna Lakeshore Expressway Dike Project, which also serves as alternate route from Bicutan,
Taguig City, to Los Baos town, Laguna province, was among three infrastructure projects approved by President Benigno Aquino III on Thurs-
day. Also approved by the National Economic and Development Authority (Neda) Board was the P14.6-billion operation and maintenance of
Laguindingan Airport in Misamis Oriental province and the P2.3-billion operation and maintenance of the new Bohol Airport, Communications
Secretary Herminio Coloma Jr. said. All three are public-private partnership projects, with a total cost of P139.77 billion. The Neda Board,
chaired by the President and composed of Cabinet members, met on Thursday in Malacaang.
P. 4 | COLLIERS INTERNATIONAL
GENERAL PROPERTY
International Finance Corporation (IFC), a member of the World Bank Group, has helped Mandaluyong City in Metro Manila develop a green-
building ordinance that aims to reduce energy consumption in new buildings by up to 20 percent and generate about P355 million in cost
savings for businesses and households within the first three years of implementation. In the Philippines, buildings emitted 33.28 million metric
tons of carbon dioxide and accounted for 36 percent of the Philippines total power consumption in 2010. The green-building ordinance was
launched last June 13 after the city council passed it on February 6 and issued its implementation rules and regulations on March 12. IFCs
partnership with Mandaluyong City is supported by the Swiss State Secretariat for Economic Affairs and the Government of Canada. Buildings
are big emitters of greenhouse gases, which contribute to global warming, leading to severe droughts and floods, said Mandaluyong Mayor
Benhur Abalos. Our city is at the heart of Metro Manila where the big shopping malls and offices are. By passing the green-building ordinance,
we will help companies reduce their energy use, thereby cutting their carbon emissions and electricity costs.
In a recent Congressional hearing, the Housing and Urban Development Coordinating Council (HUDCC) reported that the current housing
backlog stands at about 5.5 million units. Former NEDA chief Cielito F. Habito, however, has observed that Philippine government spending for
housing has been no more than one percent of its total budget making it amongst the lowest in Asia (ADB, 2009). Although CREBA estimates
that this figure may even be understated, it foresees that 500,000 units a year must be built within the next 20 years if we are to dramatically
address, if not totally wipe out, the huge housing problem. The success, however, of any government housing program depends on a well-
planned and holistic consideration of all factors that should come into play in ensuring effective and sustained program implementation. This
is why CREBA actively supports the passage of an omnibus bill creating a Department of Housing and Urban Development (DHUD) which
has been pending in the legislative mill for the past two decades. The DHUD must be so created as the highest national policy-making body
empowered to address housing in its totality by encompassing four major aspects: housing finance, production, regulation and administration.
The row between developers Ayala Land, Inc. (ALI) and SM Prime Holdings, Inc. over government-owned properties here entered a new phase
with SM Prime filing a new complaint in court. The new civil case is seen further delaying the planned development of the properties into a P6
billion mixed-use complex by Ayala Land.Ayala Land has yet to undertake development at the site, although it conducted soil tests in March
and asked the city government last month to reclassify the land for commercial use. In its new complaint, SM is asking the court to nullify the
deed of conditional sale and contract of lease between the provincial government and Ayala Land for a 3.6587-hectare (ha) property and
an adjacent 4.0481-ha lot, respectively. The new complaint was filed on May 21 before the Bacolod Regional Trial Court, about four months
after SMs first complaint was dismissed.
Malaya, 06.19.14
Advocates of green building push for the grant of incentives for these projects but they acknowledge this is a tough challenge due to the
lukewarm response both on the national government and local government levels. Ramon Fernando Rufino, Philippine Green Building Council
(PhilGBC) chairman, said local government units (LGUs) have other priorities and adopting green building standards is not at the top of their
agenda. Its much better when implemented on the local level. If we go national, one has to pass through Congress. Then theres the discussion
on the implementing rules and regulations before it can be implemented, said Rufino. I think local governments through their local ordinance
can choose what want to offer. They have the leeway to decide on things like local property tax, local business permit tax. They have power
within their own municipalities to offer incentives, added Rufino.
The first phase of the Clark Green City, which will cover 1,300 hectares of the 9,450-hectare land here, will be up for bidding by the third
quarter of this year. Arnel Paciano D. Casanova, president and chief executive officer of the Bases Conversion and Development Authority
(BCDA), said they are now preparing terms of reference to begin the process. Based on its master development plan, Clark Green City will
have five dedicated districts, namely the government district; the central business district; the academic district; the agri-forestry research and
development district; and the wellness and eco-tourism district. He said the BCDA envisions Clark Green City as the Philippines first green,
disaster-resilient and smart metropolis. At full development, Clark Green City is estimated to contribute P1.57 trillion per year to the Philippine
economy and will create 925,000 jobs. More importantly, Clark Green City will become a portal to the world economy of the countrys next
generation of global citizens, he said.
P. 5 | COLLIERS INTERNATIONAL
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