SM Prime shields itself from POGO risks
SM Prime Holdings Inc. has managed to further grow its office portfolio despite not taking in online gambling firms which have reinvigorated the commercial property market.
SMPH has seen steady growth in its office operations even as demand from traditional outsourcing companies wanes.
“The company is significantly growing its office portfolio even without signing up lucrative offshore gaming operators as tenants. SMPH has maintained its focus on global business process outsourcing firms,” said a local brokerage house.
Real estate consultancy firm Leechiu Properties Consultants projects office take-up would sustain its momentum, driven by demand from Philippine offshore gaming operators (POGOs). The online gaming industry is now the largest consumer of office space, especially with the renewed ties between the Philippines and China.
But property giants SMPH and Ayala Land don’t expect the POGO boom to last forever. Ayala Land has limited its exposure to offshore gaming leases to just 10 percent of its office portfolio.