SM Prime Holdings Inc. is spending P4.2 billion to build its fifth office building called FourE-ComCenter at the Mall of Asia complex in Pasay City.
SM Prime commercial properties group senior vice president David Rafael said in an interview following the groundbreaking ceremony that the company was bullish about the prospects of the office leasing business, despite the current market volatility.
Rafael said demand for office space, espc from business process outsourcing industry, remained strong as the slowdown in Europe and United States was forcing companies to look for ways to reduce costs by outsourcing some of their operations.
“The demand for office space remains aggressive, thanks to the continued economic growth of the country. Strong interest remains due to more investors realizing the potential of the Philippines for their business. Our job is to provide them with a good office space for their operations,” said Rafael.
The 16-story FourE-ComCenter will have 123,968 square meters of gross floor area and is expected to generate P700 million in gross rental revenues annually. The project is expected to be completed in 2019.
Rafael said the Mall of Asia complex was slowly becoming a preferred area for BPO companies, as the average rental rate within the complex was 20 percent to 25 percent lower compared to those at Ayala business district and Bonifacio Global City at P600 to P620 per square meter.
“Companies are more selective now with their office locations whether it be for expansion or relocation. They are critical in analyzing traffic, safety and accessibility of their site even the lifestyle and well-being of their employees. The competition now is all about the overall quality of the area and not just the building,” Rafael said.
The first five BPO office buildings within the Mall of Asia complex currently offer 645,000 square meters in gross floor area.
Meanwhile, Rafael said the group was also set to launch late this year or early 2017 its sixth office building at Mall of Asia complex.
He said while the original master plan of Mall of Asia complex provided for development of six office buildings in the area, the group still had more than13 hectares of property that it could develop for office development, depending on market conditions.
The first five BPO office buildings within the Mall of Asia complex currently offers 645,000 square meters of gross floor area.