Bright spot

Land values in the Makati central business district and Fort Bonifacio are expected to escalate by eight and 9.7 percent  respectively this year, while Ortigas will experience a 5.7-percent annual growth, according to a leading property consultancy firm.

In its recent report, Colliers International noted that land values in the Makati CBD appreciated by 5.9 percent in the fourth quarter of 2013, with an average price of P341,505 per square meter or an accommodation value of P21,344 per sqm. Fort Bonifacio land values increased by 2.3 percent during the last quarter of 2013 compared to the same period of 2012, with an average accommodation value of P26,035 per sqm. Land values in Ortigas grew at a marginal rate of 1.9 percent, pegged at an average of P143,683 per sqm.

Meanwhile, licenses to sell issued by the Housing and Land Use Regulatory Board (HLURB) decreased by 25.4 percent from January to November 2013. Residential projects fell to 203,033 units, 9.2 percent  lower than the 223,614 units registeread in the same period last year. While high-rise residential licenses declined by more than 36,000 (-32.9 percent) units, increase in the number of units launched in the socialized (+28.5 percent), low cost (+2.6 percent), and mid-income (+11.0 percent) housing segments tempered the decrease.

Colliers said that the significant increase in socialized housing was attributed to the government’s efforts to end the housing backlog by 2030 by providing incentives to developers.

On the other hand, commercial condominiums posted 25-percent year-on-year growth with 2,322 units. Developers have recognized these units as an alternative real estate investment option for prospective investors due to the continuing office sector boom, the report noted.

Colliers reported that around 400,000 sq m of new office space was completed in 2013, 50 percent of this in Fort Bonifacio.

Most of the buildings slated for completion in the last quarter of 2013 were moved to the first quarter of 2014, such as Robinsons Cyberscape Alpha and Beta, and Cyberpod Centris North and South Towers, all of which cater to BPO operations.

The group expects the BPO industry to continue to influence the commercial office sector in the next few years. With the recent announcement of Tholons, a global outsourcing research and advisory firm, that Manila has overtaken Mumbai as the second leading outsourcing location in the world, Colliers expects that more BPO companies will enter the country and establish operations. As a result, there would be a need for office buildings that cater to the specific needs of their prospective tenants.

This, Colliers said, is well within the forecast of the IT and Business Process Association of the Philippines (IBPAP) that the industry will hire 1.3 million full-time workers and earn export revenues of $27 billion by 2016.

Complementary to this, Colliers forecasts that through 2014 and 2015, an average of 570,000 sq m of net usable space will be delivered to sustain the office space requirement of the offshoring and outsourcing industry.

The report added that sustained demand for office space in the Makati CBD reduced the overall vacancy rate to 2.3 percent, the lowest vacancy rate posted since the first quarter of 2008 (2.7 percent).

Colliers projects that vacancy will remain at current levels this year.

The residential sector appears to be similarly upbeat.

More than 4,400 high-rise residential units were completed in 2013 in the five major CBDs that Colliers monitors. Out of the 4,400 units, 2,100 were delivered in Fort Bonifacio while the rest were located in Makati CBD and Ortigas Center. Around 19,700 units will be turned over in the next three years. The Makati CBD and Fort Bonifacio will account for more than 75 percent of the forecast supply. Ten percent are dedicated to premium units, 85 percent are classified as Grade A units, and the remaining 5 percent as Grade B units.

PTC acquires stake in Abojeb

PTC Holdings Corporation has acquired a 45-percent  interest in the AboJeb Group composed of Aboitiz Jebsen Co. Inc., Jebsens Maritime Inc., and Aboitiz Jebsen Manpower Solutions Inc.

This strategic investment by PTC, one of the largest crew management companies in the Philippines, came on the heels of its 35th year anniversary, signaling its continued confidence in and commitment to the growth and significance of the Philippine maritime sector and all its related fields, in spite of the many challenges the industry faces today. 

At the signing ceremony held last Feb. 12 at the Aboitiz Equity Ventures headquarters, AboJeb chairman, Bjorn Jebsen said that they have made a strategic decision to expand their business and that with the entry of PTC as Abojeb’s new shareholder, there is great potential to develop and grow the manpower business both here in the Philippines and internationally.

While PTC and AboJeb will continue to operate as separate companies, areas for close cooperation and synergy will be explored.  Abojeb vice chairman, Endika Aboitiz expressed his confidence in the new ownership structure, saying that this partnership has every ingredient for growth and success.

PTC Holdings CEO, Gerardo Borromeo explained that this initiative sets the groundwork for further expanding PTC’s footprint globally through new and exciting joint venture opportunities.

It brings together the strength the Aboitiz and Jebsen legacy and PTC’s shipping heritage and industry leadership, providing further dynamism to the development of the Philippine maritime industry.”

Founded in 1979, PTC is one of the largest crew management and diversified maritime services companies in the Philippines. Its range of services include marine management, education and professional development, energy and logistics, healthcare, tourism, offshore processing, property development, microfinance and international professional placement.

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