SM, Keppel set P15-B expansion of The Podium

MANILA, Philippines - SM Group’s Banco de Oro Unibank Inc. (BDO) and Keppel Land Ltd. of Singapore are investing $336 million (about P15.04 billion) to expand The Podium complex in the Ortigas central business district.

In a disclosure to the Singapore Exchange, Keppel Land said the expansion would include the construction of a 42-story office building and an extension of The Podium mall, the existing five-story retail component in the complex.

The new office tower, which will be situated above the expanded retail mall, will offer a net leasable area of over 89,000 square meters (sqm) of premium grade office space upon completion in 2019.

The Podium mall expansion, meanwhile, will provide additional 34,000 sqm of retail space, bringing the total leasable space for retail in the complex to over 50,000 sqm by 2016.

 “We are confident that when the development is fully completed, it will meet the demand for business process outsourcing (BPO) space and prime offices for multinational corporations in Manila,” said Linson Lim, Keppel Land president for Vietnam and the Philippines.

The project will be developed by SM Keppel Land Inc. (SMKL), a joint venture between BDO and Keppel Land’s local unit Keppel Philippines Properties Inc. (KPPI).

Keppel Land said The Podium expansion is part of its plan to strengthen its commercial portfolio in the Philippines.

“The Philippines remains an attractive destination for foreign direct investments. Keppel Land is well-positioned to capitalize on these opportunities as we leverage our expertise and experience as a leading office developer to grow its commercial presence in the region,” Lim said.

The Podium mall opened its doors to the public in December 2001 and is now home to specialty stores and restaurants as well as state-of-the-art cinemas.

The first phase of the project include The Podium and an office tower which will house the operations of BDO.

The office tower component of the first phase of the project, also 42-stories tall on top of The Podium, will offer about 70,000 sqm of net leasable area once completed next year.

The Podium mall, meanwhile, is currently about 90 percent leased to leading brands which include Philip Stein, Diamant, Calvin Klein, Topshop, Dorothy Perkins and Nike.

Keppel Land is a leading prime office developer in Singapore, while BDO is a unit of conglomerate SM Investments Corp., owned by the family of retail tycoon Henry Sy.