Megaworld rides boom, builds 12 office towers in Fort Bonifacio
MANILA, Philippines – As demand for office space in Fort Bonifacio, Taguig City continues to boom, Andrew Tan-led Megaworld is spending P20 billion ($441.2 million) to open 12 new office buildings in 3 of its 4 townships in the area over the next 3 years.
In the process, the company’s office leasing portfolio will double its current 300,000 square meters (sq m) office space inventory in Fort Bonifacio alone by 2018.
“By 2018, our total office space inventory in Fort Bonifacio alone will reach around 650,000 sq m, still making us the leading office developer in this booming district,” said Megaworld senior vice president Jericho P. Go in a press conference Tuesday, July 21.
The 12 towers will be headlined by the new 25-story headquarters of Alliance Global, Megaworld’s parent firm, to be called Alliance Global Tower.
It will be located in Uptown Bonifacio, a 15.4-hectare integrated urban township in the northern part of Fort Bonifacio near Kalayaan Avenue.
Next to the new headquarters will be 3 other towers: the 15-story Uptown Tower 1 (30,000 sq m), the 15-story Uptown Tower 2 (30,000 sq m); the 20-story Uptown Tower 3 (40,000 sq m).
“We envision Uptown Bonifacio to rise as a bustling CBD (central business district) of Fort Bonifacio. At present, several multinational companies have already signed up to set up their operations here,” Go said.
Uptown towers 1, 2 and 3 are now 90% leased out even before the towers' completion, Go added.
The company is also building 6 more campus-type office towers in its new township, the 34.5-hectare McKinley West: One West Campus, Two West Campus, Three West Campus, Five West Campus, Six West Campus, and Eight West Campus.
Each tower is five-story high with 10,000 sq m of leasable office spaces.
Within 3 years, two more office towers are in the pipeline for Megaworld in Fort Bonifacio. These new office towers will add around 140,000 sq m to the company’s office space inventory.
Fort Bonifacio boom
Go said Megaworld’s expansion in Fort Bonifacio is demand driven.
“We’re not building in Fort Bonifacio because we feel it’s a good place to build, [but] there’s a real and tangible demand for more office space,” Go said.
The highest yield in rental rates is in Fort Bonifacio, averaging P700 ($15.4) – P900 ($19.8) per sq m, he added.
By 2018, Fort Bonifacio will account for about 65% of Megaworld’s total office space, as it has more land availability compared to other business districts such as Makati, where space is very limited these days.
“We know for a fact that Fort Bonifacio is becoming the de facto central business district of the country because of its vast amounts of land, cutting edge construction technology, and superior infrastructure than older business districts,” he said.
"The roads are wider, there are more access points, and there are more opportunities to develop mass transport systems, and we feel that is key," Go explained.
This is especially useful to the IT-BPO sector that is heavily responsible for the Fort Bonifacio boom, accounting for 70%-80% of Megaworld’s lessees. – Rappler.com
$1 = P 45.30