MANILA, Philippines–Tycoon Andrew Tan-led Megaworld Corp. is raising its stake in Cebu’s office property market in a bid to attract more business process outsourcing (BPO) operators to its P20-billion Mactan Newtown township project.
Citing the favorable economic climate for the BPO industry especially in Cebu, the company expects to offer at least 150,000 square meters of leasable office space in the more than 20-hectare Mactan Newtown project within the next three to five years, Megaworld announced on Friday.
“Megaworld is keen on expanding its office spaces for BPO companies inside The Mactan Newtown mainly because we see the significant growth of the BPO industry in Cebu. This we have observed in recent years,” Jericho Go, Megaworld first vice president said in a press statement.
“We can actually add up more leasable office spaces if the demand is really high,” said Go. “Cheaper labor, abundant manpower, affordable location, and right assistance from the local government make Cebu ripe for BPO businesses.”
This is part of Megaworld’s plan to groom Mactan Island as Cebu’s primary BPO hub. The Mactan Newtown is expected to generate around 40,000 full-time BPO employees by 2018.
“The urban landscape of The Mactan Newtown provides great opportunity for BPO companies to invest here in Cebu,” Go added.
One of the first BPO operators to set up office in Megaworld’s Cebu hub is Results Companies (Results Manila), a leading global provider of customer management and business process outsourcing solutions for over 20 years.
Results Manila is set to open in Mactan Newtown its fifth call center in the Philippines. It is also its first office outside of Metro Manila. Its new hub rising at the five-level One World Center is expected to employ around 1,500 BPO workers.
“Cebu is home to a great pool of talented, educated people with exceptional drive for exceeding customer expectations. We expanded our office in Cebu to allow us to diversify our locations for our clients and internal business continuity planning,” said Kevin Betts, vice president for facilities development and administration at Results Manila.
The Mactan Newtown is Megaworld’s biggest township project so far in Metro Cebu. Part of the master-plan is to develop premier residential communities with the finest amenities, upscale hotels, premium commercial establishments and BPO office towers. It has been declared a ‘Special Economic Zone’ by Pres. Benigno S. Aquino III, allowing locators to enjoy various privileges such as tax incentives and holidays.
Megaworld has earmarked P20 billion for the development of The Mactan Newtown in the next five to seven years.