Ortigas readies P125 B for massive redevelopment plan

MANILA, Philippines -  Ortigas & Co., a pioneering Filipino real estate developer now co-owned by property giants SM Prime and Ayala Land, is preparing to spend at least P125 billion for the massive redevelopment of its three masterplanned estates within the Ortigas central business district.

Ortigas & Co. president and chief executive officer Jaime Ysmael, in a briefing yesterday, outlined the company’s major expansion program that seeks to transform and move the company “to new levels and profitability.”

Ysmael said the firm is pouring in P60 billion for Greenhills redevelopment, another P60 billion for Frontera Verde uplift, and an initial P5 billion for the first phase of the Capitol Commons expansion.

For Greenhills, Ysmael said Ortigas & Co. would initially invest P10 billion for the first phase which will include the development of a new residential tower, a BPO office tower, and the expansion and modernization of the Greenhills Shopping Center.

To be called Connor, the 55-story residential tower will rise on the intersection of Club Filipino Ave. and Eisenhower St. It will be the company’s second foray in the vertical residential development in Greenhills following the Viridian.

“Connor is going to be our next focal project in Greenhills. We are tapping into the market of second-generation Greenhills residents and other Metro Manila residents who are looking for an investment or a home that is centrally located within the city as well as situated in a mixed-use setting,” Ysmael said.

For the P60-billion Frontera Verde redevelopment, Ysmael said the company plans to launch early next year the first phase which will either be a residential or office component. The masterplan for Frontera Verde includes a mall and hotel components aside from the residential and office portions “to make it a true business district on its own.”

Ortigas & Co. is also preparing to invest P5 billion for the construction of a new BPO building and Estancia mall extension in Capitol Commons.

Greenhills and Frontera Verde both span 16 hectares, while Capitol Commons measures 10 hectares.

Ysmael said funding for the redevelopment and expansion projects would be sourced from cash from company operations to be supplemented by borrowings.

“An initial public offering is something that is there for funding purposes, but for now we are focusing on getting the house in order, finishing masterplans and executing them,” he said.