Real estate giant, Megaworld Corp., is eyeing continuous and strategic property developments aimed at Business Process Outsourcing (BPO) clients in and outside Metro Manila. Headed by billionaire Andrew Tan, the development company will pour investments amounting to $5 billion over the next 10 years, which will push comprehensive developments of offices, shops, and residential communities serving BPOs and their workers.
The decade-long real estate makeover will create a total of 10 townships spanning about 16 million square feet of new offices, corporate centers, and buildings that would be surrounded by retail shops and homes.
The concept is closely patterned to one of Megaworld’s most successful developments known as Eastwood, which hosts some of the biggest BPO companies and operations in Quezon City. Built in 1997, Eastwood now attracts about 100,000 people every day from residents, shoppers, and employees.
“The Philippines is among the most competitive destinations for BPOs,” explained vice-president, Mr. Jericho Go in an article published in Bloomberg.com. “There are many U.S. and European companies who are seriously considering setting up here,” Go added.
Real Estate Developments Outside Manila
Commercial and residential spaces are not only in demand in Metro Manila. The $5B worth of investments will also cover developments in Iloilo, Lapu-Lapu city, (which is part of Cebu Island’s Metropolitan area), and Davao. This coincides with the government’s goals of increasing BPO revenues by setting up world-class infrastructures and facilities outside of Manila and into other provinces particularly in the central and southern Philippines.
Just last quarter, reports from Jones Lang LaSalle (JLL), an international property management group, stated that available office spaces in Metro Manila are likely to run out three to four years from now if the current demand of 400,000 square meters continues.
The PH government, together with national organizations such as the Business Process Association of the Philippines (BPAP) and ICT Davao, has been encouraging and planning programs on how to improve conditions in the provinces to make them at par with what Manila has to offer in terms of office spaces, technology, and facilities.
Natural disasters and redundancy concerns for BPOs have also shifted the focus of operations outside the capital city and have raised the need to beef up real estate developments in the provinces.
