PLDT goes into property development

As part of a scheme to make full use of idle assets, telecommunications industry leader Philippine Long Distance Telephone Co. (PLDT) has entered the property business starting with the development of a company-owned piece of land in the Makati Central Business District.

According to PLDT president and chief executive officer Manuel V.Pangilinan, management is currently looking at several other idle facilities not only in Metro Manila but in the provinces. "We need to make some adjustments in the way we do our business," he said.

Pangilinan said there is a need for a new business model for the company’s fixed line business, whose growth has been "subdued."

PLDT and Burgundy Asset Development Corp. yesterday announced the signing of a joint venture agreement to redevelop PLDT’s prime property along Malugay Street, located at the west end of Ayala Avenue in Makati City.

The 8,056-sq. meter property is considered a primary gateway to the Makati Central Business District. Pangilinan and Burgundy CEO Rogelio T. Serafica, signed the agreement last Friday.

PLDT officials said the agreement with Burgundy reflects PLDT’s commitment to strengthen its business through rationalizing its real estate portfolio and optimizing the use of its resources and assets.

"We are committed to generating more value out of our existing assets and resources," explained Mar Paguio, head of PLDT’s asset protection and management division.

He said that they are carefully studying current utilization of company properties and facilities nationwide in order to optimize their potential. "We are in discussions with other parties for our other Properties," Paguio added.

Burgundy is a major developer in the residential condominium industry having successfully built and sold over five high-rise office and condominium units in less than 10 years. Among their projects are Burgundy Westbay along Vito Cruz, One Burgundy Plaza and The Burgundy Place In Loyola Heights in Quezon City.

Burgundy’s most recent project is the Burgundy Corporate Tower, along Sen. Gil J. Puyat Ave. (Buendia) in Makati and is currently completing the Trans Pacific Place, a high-rise condominium along Taft Ave.

Under the agreement, Burgundy will redevelop the property previously used as a warehouse/parking lot by PLDT and Smart, into a mixed-use commercial/high-rise residential development. In exchange for its property, PLDT will be given prime units in the development which is expected to be sold to a strong and growing target market that includes young professionals who work in the Makati CBD, including employees of the PLDT Group.

The project is located in an emerging area at the fringe of the Makati CBD. Prospective owners of the development will have the opportunity of owning quality condominium units with accessibility to the CBD without having to pay CBD prices.

Based on initial discussions, the planned development will have three residential towers on top of a podium deck. The podium will house retail and commercial spaces and provide first class amenities for the

residential unit occupants such as a health and fitness center, a swimming pool, a helipad and an exclusive lounge, business center, internet and conference areas, to name a few.

The project is expected to start within the year and completed in three years.