Federal Land allots P5B for top-of-the-line office buildings

Federal Land Inc., the property arm of the Metrobank Group of Companies of taipan George S.K. Ty, is allotting P5 billion next year for the establishment of top-of-the-line office buildings catering to the business process outsourcing industry and the continued development of residential condominium projects.

At the same time, Federal Land disclosed yesterday that it signed an agreement with Orix Corp., one of the largest diversified financial services group in Tokyo, Japan, to jointly develop real estate projects in the Philippines.

FedLand president Alfred Ty said the company remains bullish on  the prospects of the local property sector despite concerns over the global credit crunch. The optimism is due to robust domestic sales and a growing market mainly made up of Filipino expatriates or Filipinos working/living abroad. “There’s a lot of room for growth. I think the real estate market will continue to grow. It’s just a matter of coming up with the right design and location,” he said.

The programmed capital budget for next year is higher than the P3 billion-P4 billion allotted this year as the company starts work on new projects and new phases of existing developments.

Fedland is putting up a three-tower office building on a 1.5-hectare property within the Metropolitan Park in Pasay City, estimated to cost around P2 billion. Each tower will have a gross floor area of 65,000 square meters and a leasable area of 55,000 square meters.

The first tower, slated for completion in June 2008, will offer 10,000 square meters of office space and will be registered with the PEZA.

Ty said the company is also considering putting up BPO buildings within the Marquinton Residences in Marikina and Fort Bonifacio in Taguig.

He said FedLand is set to complete the masterplan for a 25-hectare property in the northern portion of the Bonifacio Global City by the end of the year. Of the total, 10.4 hectares belong to Fedland.

Fedland is planning to convert the property into a high-end mixed-use township with residential, commercial, retail, office building and hotel developments.

Aside from this, Fedland is setting aside P4 billion for the establishment of a three-tower complex within the Bay Garden community in Pasay City which will include residential units, full-serviced apartments, and an athletics club.

Ty said the company is also set to embark on its first horizontal development project which would be in Cavite.

For its initial project under its partnership with Orix, the joint venture company FedLand Orix Corp. will construct a high end twin tower residential condominium along Legaspi Street, Makati City. The project, dubbed The Grand Midori Makati, is estimated to cost about P4 billion. It is expected to be completed by 2011.

FedLand Orix Corp. is 60 percent owned by Fedland while the remaining 40 percent is held by Orix, which has presence in over 200 locations across 24 countries worldwide.

Among the major real estate assets of Orix include the 1,881 square meter Intage Akibara Building, the 1,245 square meter Orix Shinagawa building, and the 66,603 square meter logistics center in Sakai, Osaka.

Orix has also various real estate projects in the high-growth markets of China and Vietnam.