News Article

Alphaland targets P4.4-billion earnings from Makati project

07/19/2012 | By: MIGUEL R. CAMUS, BusinessMirror

LISTED upscale builder Alphaland Corp. is targeting up to P4.4 billion in sales and recurring revenues from its first office building project rising on Ayala Avenue in Makati City. In a briefing with reporters on Thursday, Alphaland officials said the builder remains optimistic on its prospects for the 34-story Alphaland Tower as business confidence in the country picks up, allowing the project to attract both local and overseas corporations.

Alphaland Tower is slated for completion by the end of the year and will begin operations by January 2013. The company is also employing strategies to differentiate the project from the competition, said Marianna Ongpin, director for property management and leasing. 

While the country’s office property boom is largely driven by business-process outsourcing, she said Alphaland Tower would not take this route and instead focus on wooing large corporations in the Philippines and abroad like banks and insurance firms given its prime location. Ongpin said there is also a strong preference by management for a single tenant—an effort being handled personally by company chairman Roberto Ongpin, a former trade minister.  “The chairman feels confident that we will be able to find that [one] tenant,” Ongpin said.

She said the company is also open to offers involving the outright sale of Alphaland Tower, but clarified that nothing is on the table at the moment.  In the meantime, the company has begun receiving inquiries mainly for 15,000-square-meter to 20,000-square meter cuts. Should efforts to take on a single tenant fail, officials still expect half of its leasable area to be taken up by the end of 2012.

Alphaland Tower will have a gross floor area of 48,000 square meters. Up for sale are sections of   ground floor, second floor and penthouse units, which are estimated to fetch a combined P1.4 billion. Another P3 billion will come from leasing income, assuming units are fully leased out. 

Ongpin said rates are being pegged at P1,000 per square meter and parking fees at P3,500 per month. “There are multinational companies who are in the move right now and are selecting sustainable buildings for their uses,” Luigi Villanueva, project director for Alphaland Tower. “It’s easier for them to set up shop in the Philippines. The building has already earned a pre-certified GOLD rating [core and shell] with the US Green Building Council’s Leadership in Energy and Environmental Design rating system.

Alphaland shares did not move at P29.30 each on Thursday, giving it a market value of P58.14 billion. It has a free-float level of just 8 percent, below the minimum 10 percent required by the Philippine Stock Exchange.

In Photo: Luis Miguel Villanueva, project director of Alphaland Tower, discusses the development of the project with Yanna Ongpin, vice president for leasing at Alphaland Corp., in Thursday’s press conference held in Makati City. (Nonie Reyes)