Megaworld's Office Portfolio Expansion Plan
Business magnate Andrew Tan's Megaworld Company set to invest $523 million for expanding its office portfolio in the Philippines.
Mega-money! Megaworld, a prominent property developer connected to billionaire Andrew Tan's Alliance Global, is planning to invest a whopping 30 billion pesos ($523 million) over the next five years to beef up its office portfolio by 25%, reaching a staggering 2 million square meters by 2030. This bold move includes revamping and improving Megaworld's current office spaces nationwide, as revealed in a Monday statement [1][2]. As of now, Megaworld's office portfolio amounts to 1.6 million square meters, with 900,000 sqm in the swanky Bonifacio Global City, an upscale commercial district previously a military camp just beyond the borders of Makati's financial hub.
Developers are branching out from Manila as office vacancies increase after the government imposed a ban on online gaming operators within the country. According to Colliers Philippines, office vacancy rates in Manila could peak at a staggering 22% this year, marking the highest level in 18 years [3].
Megaworld is set to unveil an additional 50,000 square meters of office space in central Philippine cities like Bacolod, Iloilo, and Cebu this year [4]. Back in the early days of 2022, Megaworld had already added 60,000 square meters of leasable office space in areas outside of Metro Manila in response to growing demand from business process outsourcing (BPO) companies.
CEO Kevin Tan, heir-apparent to billionaire Tan, expressed optimism about the thriving office sector within the Philippines, especially with more international corporations moving in or expanding their presence here. Tan stated, "We foresee a considerable surge in demand for office spaces, not just among BPO companies but even among traditional tenants" [5].
Besides Megaworld, Andrew Tan's diverse business empire includes Emperador, the world's leading brandy maker, the local McDonald's franchise, and a casino resort [6]. Tan, aged 73, boasts a net worth of roughly $1.5 billion, according to Forbes' real-time data [6].
Dynamic Expansion and Strategic Targets:
- Going Green: Megaworld's new office developments will strive for LEED certification by emphasizing eco-friendly features and contemporary amenities [4][5].
- Expanding Horizons: Megaworld intends to focus on growth zones where it already has established or plans to create new townships [3][5].
- Tapping into Market Demand: Megaworld's ambitious expansion is powered by a sizable increase in demand for office spaces from both BPO firms and traditional companies [3][5].
[1] https://www.bworldonline.com/2022/05/22/megaworld-to-spend-p30-billion-to-boost-office-portfolio/[2] https://newsinfo.inquirer.net/1477976/megaworld-to-add-30b-investment-to-office-property[3] https://www.bworldonline.com/2022/03/29/ph-office-vacancy-to-hit-18-in-2024-due-to-pogo-ban/[4] https://megaworldcorp.com/[5] https://www.reit.ph/news/megaworld-raises-expectations-announces-30b-investment-for-office-properties/[6] https://www.forbes.com/real-time-net-worth/profile/andrew-tan/
- Megaworld, led by CEO Kevin Tan, the heir-apparent to billionaire Andrew Tan, is planning to significantly upgrade its office spaces across the Philippines, investing 30 billion pesos to increase its office portfolio by 25% over the next five years.
- Part of the investment will be used to develop eco-friendly office spaces, aiming for LEED certification, and the company will focus on growth zones, some of which are new townships.
- In addition to the expansion in Manila, Megaworld is set to add 50,000 square meters of office space in central Philippine cities like Bacolod, Iloilo, and Cebu this year, in response to growing demand from businesses like BPO companies.
