Eton unfazed by POGO exodus

MANILA, Philippines — Lucio Tan-owned Eton Properties is not worried about the exit of Philippine offshore gaming operators (POGOs) in the country despite its expected effect on Metro Manila’s office market.

“We’ll be fine,” Eton president and CEO Kyle Tan said, noting that while their exposure to POGOs is “not super big,” it is still something they have to consider.

“We still have to do some work. There are a lot of things we have to consider on that,” he said.

Tan assured the company will be “compliant with everything.”

In late 2022, Eton sealed a deal with one of the biggest POGO companies from Southeast Asia to lease more than 6,000 square meters of office space or two floors of its eWestPod building inside Eton WestEnd Square.

The company earlier said it sees the positive ripple effect of POGO in its leasing business “because some of them are also looking for residential and commercial spaces, which are a good indicator of our overall growth in occupancy rate.”

President Marcos during his recent State of the Nation Address ordered the immediate ban on POGOs.

The POGO ban’s near-term impact is expected to be most felt in the property sector.

Global investment management company Colliers said in a report last week that the government decision to ban POGOs is expected to affect Metro Manila’s office market, with vacancy rate seen breaching 20 percent by yearend.

It said POGOs occupied about 489,000 square meters of office space in Metro Manila as of end-June, or about 3.5 percent of the total office stock.

Eton Properties, on its end, specializes in office projects, commercial centers and mixed-use township developments, as well as high-end and mid-income high-rise and horizontal residential developments.

To sustain its growth in the coming years, the company intends to unveil two residential communities as well as introduce a new hotel brand in the next two to three years.

Asked on the planned new hotel brand, Tan said it is still in the works.

He said they are looking at launching it “hopefully soon” but not this year.