PH’s largest office developer continues to generate jobs, helps propel economy

MANILA, Philippines — With close to 1.3 million square meters, Megaworld remains the Philippines’ largest developer and lessor of office spaces.

A developer of urban communities with an eye for lifestyle, economic, socio-civic and academic integration, Megaworld incorporates work spaces with human movement and experience of primary consideration.  This creates a desirability of location, an atmosphere for productivity, and a catalyst for aspirations.

McKinley Hill in Fort Bonifacio Taguig, which is celebrating its 15th year, plays host to about 15 office buildings where some of the biggest multinational companies have located their regional headquarters.

Of a long list of award-winning office developments, landmark contracts for offices with JP Morgan Chase Bank, N.A and WeWork are recent additions to the dynamic mix of multinational companies at the Uptown Bonifacio. JP Morgan Chase is set to establish their Philippine Global Services Center in a 25-storey structure with an estimated GLA of 70,000 square meters.

Uptown Bonifacio, which was recently named as the Philippines’ “Best Township Development,” has five award-winning office towers that are home to about 50,000 workers.

“Megaworld is proud to build the new home of JP Morgan Chase in Uptown Bonifacio as it consolidates existing Metro Manila operations under one roof – all in a state-of-the-art, prime office tower, with application to a LEED Gold Certification. This multibillion peso deal with a single company is the biggest in the country’s office leasing industry,” says Roland Tiongson, first vice president and head of Megaworld Premier Offices. “Construction is on track for completion in 2021, and targeted for full operations in 2022.”

Eastwood City is the first IT-park granted cyber-city status by PEZA in the history of Philippine real estate.

At present, approximately 20% of about 1.3 million BPO workers in the Philippines are in a Megaworld township or Megaworld Premier office building with an estimated 70,000 in Eastwood City (Quezon City), a shared total of 83,000 in McKinley Hill and McKinley West (both in Taguig City), and a combined workforce of 38,000 in Iloilo Business Park, The Mactan Newtown, and Southwoods City (Biñan, Laguna).

As of 2018, total lease revenues from office developments ended at Php 8 billion, with the inclusion of ArcoVia City (Pasig City) and Davao Park District (Lanang, Davao).  With upcoming spaces in Capital Town (San Fernando, Pampanga) and The Upper East (Bacolod City), additional office space inventory is expected in the next 3 to 5 years.

Home to close to 10,000 BPO workers, Southwoods Office Towers in Biñan City, Laguna was awarded with the Gold Award in the Office Development Category at the 2018 Property and Real Estate Excellence Awards by FIABCI Philippines.

The movement of global organizations such as Accenture, Wells Fargo, Factset and Google, to Megaworld Premier Offices is proof of relevant masterplan design, future proof infrastructure and living, breathing spaces for people and business to thrive.  The active participation of Kevin Tan, chief strategy officer of Megaworld, in the finer details is evident as continue to demonstrate a keen eye for innovative communities.

With the launch of its brand, Megaworld Premier Offices, the company aims to bring a signature to its spaces and service. “Our office developments will continue to become the benchmarks for sustainability and for offering best-in-class, technology-driven office infrastructure, facilities for our topnotch tenants,” Tiongson shares. “We will continue to deliver office projects that cater to co-working and flexible work space market without having to compete with established operators.  Instead, we plan to be the ideal partners of these companies.”

The move to deliver sustainability, technology and flexibility in office spaces is reflective of market forecast by Colliers International in the Q1 2019 report. “Over the past two years, Colliers has seen a more aggressive development of LEED-certified buildings while some developers are providing free access to the office towers’ executive lounge to C-level executives of their tenants.  This should be more prevalent over the next three years as we see the expansion of discerning Knowledge Process Outsourcing (KPO) tenants.”

The International Corporate Plaza located inside the Iloilo Business Park is the first office development inside the Iloilo Business Park that offers office spaces for sale.

The report also cites rising demand for flight-to-quality (i.e. transfer to newer and larger floorplate buildings), and encourages developers in locations with vacancy of between 0.6% and 3.0% to expedite construction and consider redeveloping old buildings.

One Corporate Place inside the Maple Grove township in General Trias City, Cavite offers 93 select office units that are ideal for corporate offices, BPOs, and small- to- medium enterprises.

Part of Megaworld Premier Office’s initiative integrates the redevelopment of office spaces that have been operational for more than 10 years.  The ongoing Building Enhancement Program includes renovation and redesign of lobbies and toilets, as well as upgrading works for the buildings’ cooling systems and other critical equipment.

In keeping with the stance towards countryside development, Megaworld is expecting to launch six township developments until 2020.  Five of these new expansive townships and lifestyle communities are in Luzon, while one is in Mindanao.

“Currently, we have a little over 4,000 hectares of both developed and developable land. By next year, we will increase our land ownership and land holding to more than 6,000 hectares as we continue to focus on our goal to expand to key growth areas in the provinces; help boost tourism, provide jobs, and further spur economic opportunities outside of Metro Manila,” reveals Kevin L. Tan, chief strategy officer.

The cyberpark in The Mactan Newtown will be home to close to 50,000 BPO workers within the next three years.

Megaworld Premier Offices intends to add another 116,000 sqm. in 2020, and 111,600 sqm. in 2021.  Tiongson adds, “We have a healthy project portfolio as we look to create at least 100,000 square meters of office spaces every year in the midterm, and continue pursuing leasing opportunities with Fortune 500, and even, unicorn and decacorn companies.”

One of 24 townships and counting, the world-class 72-hectare Iloilo Business Park in Mandurriao District competes on a global scale whilst retaining the charm of Western Visayas.

Further, Tiongson says, “We are looking to bring more office developments to our existing townships in emerging business destinations like Pampanga, Cavite, Laguna, Iloilo and Bacolod.  Our township development in provincial locations are designed with the aim of contributing in employment generation, as well as to influence reverse migration to decongest major cities such as Metro Manila and Metro Cebu.”

With an eye toward next-wave cities and a substantial landbank, investments are in line with the government’s initiative on countryside development and supporting the creation of new economic centers.

Aside from office spaces for lease, Megaworld Premier Offices has also ventured into selling prime office spaces in its townships in Cavite and Iloilo.