PEZA moratorium won’t affect Ayala, Gokongwei, Andrew Tan, Gotianun – COL
No skin off their noses.
President Rodrigo Duterte’s order imposing a moratorium on economic zones in Metro Manila won’t be a skin of the noses off the big boys of the property sector.
COL Financial said that if Duterte signed Administrative Order No. 16 a few years ago, the property giants would have been shaken considering their dependence on business process outsourcing (BPO) firms that have fueled their sales since the start of the millennium.
Citing data from Leechiu Property Consultants (LPC), COL said BPOs share of office space in Metro Manila has shrank from 46 percent in 2017 to 32 percent in the first half this year due the flood of offshore gaming operators (under POGO) and surge in demand for shared workspace.
COL said most of the property giants’ ecozone projects in Metro Manila have been approved and ecozones account for a declining share of their total portfolio.
This is COL Financial’s take on the Big Four:
* Ayala Land Inc.
“The impact would also be minimal as the buildings with pending approvals are already in Malacañang, fulling under transitory provision. All else in their pipeline are headquarter-types and Cebu-based. Should demand shift to ex Metro Manila, ALI is positioned to take advantage given its nearby estates such as Vermosa, Nuvali, Evo City in Cavite, Altarazza in Bulacan and Alviera in Pampanga. In Cebu, ALI has CBP, Cebu IT Park and Gatewalk Central and a few others in Visayas and Mindanao.”
* Megaworld of Andrew Tan
“Their only township that is not PEZA (Philippine Economic Zone Authority)-accredited is Arcovia in Pasig. However, the company has been identified as a location for POGOs. In fact, the first building scheduled for completion in 2019 is already 100 percent leased out to POGO. Megaworld has a lot of office projects outside Metro Manila (Cebu, Iloilo, Pampanga, Bacolod) ready to capitalize on the push for rural development.”
*Robinsons Land Corp. of John Gokongwei
“Around 81 percent of their future buildings in Metro Manila are already PEZA accredited. We believe the remaining 19 percent could easily be taken up by POGO or traditional offices.”
* Filinvest Land Inc. of Gotianun family
“All pending buildings inside Metro Manila has pending PEZA applications thus falling under transitory provision while Alabang projects are already PEZA accredited. A big part of FLI’s expansion will come from Clark and Cebu which are also already PEZAaccredited, putting them in position to capitalize on the government’s push for rural development.”