Megaworld on track to hit 1M-sqm office inventory by yearend

ABS-CBN News

Posted at Oct 10 2017 04:16 PM

MANILA - Megaworld Corp has said it would hit 1 million square meters of office inventory by the end of the year and could become the first Philippine property developer to achieve the feat if they hit the target.

Megaworld is set to complete 111,500 sqms of office space for lease by December, adding to its existing 885,500 sqm, the firm said in a statement Monday.

"Megaworld remains bullish about expanding its office portfolio and is on track to become the first developer in the country to reach 1 million sqm of office space inventory by the end of the year," said Megaworld senior vice president Jericho P. Go.

Go said they expect to generate P7.2 billion in office space rental projects out of the total P12 billion rental income for the year, including a rising demand for office space by the online gaming community.

Earlier this month, Leechiu, a property consultancy firm, reported an increased office space demand by the online gaming industry, forcing the BPO sector to expand outside the metro.

"We are the first, if not among the first, to see the potential of this segment in office rental. Our expertise in office development allows us to efficiently cater to the needs of the Philippine Online Gaming Operators (POGOs). While only 8 percent of our total inventory caters to POGOs, we continue to see a bright spot for growth in this segment," Go said.

POGOs also augment sales of residential condominiums as workers prefer to live near their workplace.

Go said POGO operators are not just signing up for 5-year office lease contracts but are also getting condominium units "in a township development that are ready for occupancy" because they mostly get workers from mainland China and "offer them not just salary but housing and food as well."