GT Capital hikes use of Roxas Blvd property

MANILA, Philippines - The property development arm of tycoon George Ty’s GT Capital Holdings Inc. is increasing the utilization rate of its prime property along Roxas Boulevard.

The construction of offices and the increase in the retail space in the Bluebay Walk project forms part of Federal Land Inc.’s P12-billion capital spending this year, its top official said.

“We expect to replicate our performance last year and add more products in our portfolio, more retail line,” said Federal Land president Alfred Ty.

In the Bay area along Roxas Boulevard, Federal Land launched the Bluebay Walk that offers 30,000 square meters of retail space for restaurants, bars and car parking.

Ty said the property firm is also putting up offices for the business process outsourcing (BPO) sector in the area.

“This one should be exciting because that area is centrally located by the bay area. There is a lot of public transportation that will complement the retail segment,” Ty said.

The 15-story BPO office building will offer about 25,000 square meters of gross leasable area and will be completed next year.

To date, GT Capital has office space in GT Tower and AXA Life towers.

“(Utilization of the Bay area) is still very low. I think just 30 percent. Still a lot of space for development,” Ty said.

Federal Land has put up several residential condominium projects and a Toyota dealership office in the 37-hectare property.

“We have residential projects there, retail and BPO. That one should be in P4-billion range [for capital expenditures],” Ty said.

The property near the Ty Group’s lot has already been developed as the SM Mall of Asia complex composed of residential condominiums, a shopping mall, a hotel and a coliseum.

For capital expenditures, Ty said Federal Land allotted P10 to P12 billion this year, of which P4 to P5 billion will be spent for the Fort Bonifacio developments.

It is higher than the P8-billion Federal Land spent last year, he said, adding that the bulk of this year’s spending will be supported by internally generated cash.

Asked about debt refinancing given low interest rates, Ty said that “it is an option...there is a lot of liquidity in the market so we are looking into that and see what is available.”

Ty said Federal Land is still interested in acquiring a prime lot owned by the Philippine National Bank at the corner of Paseo de Roxas and Gil Puyat in Makati.

Ty said the property can be connected to the office the Metropolitan Bank & Trust Co. office and can also be developed into a residential project with retail space.