SM Prime to invest P3.2 B on 4th E-com bldg in MOA

MANILA, Philippines - SM Prime Holdings Inc. is spending P3.2 billion for the development of a fourth commercial building under its E-com Centers project at the Mall of Asia (MOA) Complex in Pasay City.

ThreeE-com Center, which broke ground yesterday, is the fourth of six E-com buildings to rise in the masterplanned SM MOA Complex offering office spaces for business process outsourcing (BPOs) and regular office tenants.

“The BPO sector has been one of our major economic growth drivers and it has not exhibited signs of slowing down. This gives us the confidence and motivation to continue pursuing projects like this,” said Dave Rafael, SM Prime’s Commercial Properties Group senior vice president.

Rafael said SM Prime to date has already invested P7.3 billion on three E-com buildings, two of which are already finished and operational while the other one is set to open by April next year.

OneE-com Center and TwoE-com Center were completed in 2008 and 2012, respectively.

FiveE-com Center will be finished by next year while ThreeE-com Center will be completed by 2017.

“We’ve accelerated development because demand from the BPO industry continues to be very strong,” Rafael said.

ThreeE-com Center is a 15-storey commercial building that will have a total gross floor area of 111,727 square meters.

The commercial building is specifically eyed to cater to the growing demand for office space from outsourcing industry as well as shipping, logistics and other businesses.

Rafael said SM Prime expects an annual gross rental revenue of P1 billion from the project alone upon completion.

“We are hoping it becomes a LEED certified building so it can have a rental premium,” he said.

LEED is the US Green Building Council’s internationally recognized rating system, and provides third-party verification that a building, home or community was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health.

FiveE-com Center, meanwhile, is eyed to post an annual gross rental revenue of about P600 to P700 million upon completion.

Rafael said FiveE-com Center is already 50 percent leased out to date.

“ThreeE-com and FiveE-com are current additions to the six commercial buildings to be constructed under the E-com Centers project of SM Prime Commercial Properties Group. This is part of the company’s effort to transform the MOA Complex into a prime business and entertainment complex,” SM Prime said.

SM Prime serves as the property arm of the SM Group, which has interests in banking and retail sectors apart from the property segment.