MANILA, Philippines - Alveo Land Corp., the mid-income housing unit of property giant Ayala Land Inc., is spending P6 billion to transform the Jaka Tower along Ayala Ave. into a premier 48-floor office tower.
The project dubbed the Alveo Financial Tower will house 363 office units as well as a variety of amenities and facilities that enhance corporate activity.
The Jaka Tower is an unfinished tower that was owned by the family of Sen. Juan Ponce Enrile. It was supposed to be a 49-story skyscraper but was left unfinished because of the 1997 Asian financial crisis.
Ayala Land bought the property in September last year, beating other parties interested in the much coveted prime estate property situated in the heart of Ayala Ave.
Jennylle Tupaz, Alveo vice president and head of project development group said the P6 billion includes the acquisition cost.
The tower, scheduled for turnover in 2020, will have 48 floors and a roof deck. It is targeting investors, small and medium enterprises and other corporations intending to relocate to Ayala Ave.
Sitting on a prime 2,400-square-meter lot, the Alveo Financial Tower is expected to rake in P10.7 billion in sales. The company has sold over 60 percent of the office units, translating to P5.8-billion in sales.
The project, which will have a gross floor area of 63,739 square meters, boasts of being the only consolidated office for sale option on Ayala Ave.
Construction of the project will start in the fourth quarter.
Alveo expects investment returns to be as high as six percent based on the prevailing lease rates in the Makati Central Business District (CBD).
“With its much-coveted location on Ayala Avenue, Alveo Financial Tower has become a rare investment opportunity for high-powered businesses and organizations wanting to be part of the country’s premier financial center,” Tupaz said.
Alveo commissioned Seattle-based structural consultant Magnusson Klemencic Associates (MKA) and prominent local engineering firm Sy^2 + Associates to conduct structural integrity tests on the existing structure.
Alveo Financial Tower will also form a major component of City Gate, Ayala Land’s P20-billion masterplanned mixed-use development strategically located at the rejuvenated northern tip of Ayala Avenue.
City Gate will have a 2.2-hectare core area containing 81,000 sqm. of gross leasable office space and 14,000 sqm. of premium retail space, as well as upscale residential developments, green open spaces, and a 312-suite hotel,.
A typical office space in Alveo Financial Tower sells at an average of P240,000 per sqm. or P27.8 million for an average unit size of 116 sqm. Tupaz said.