SM Prime earmarks P4B for new office complex
Property giant SM Prime Holdings Inc. is investing more than P4 billion in building an elegant three-tower office complex at the Mall of Asia’s Bayshore area, which the company plans to transform into a leading central business district.
The commercial properties group of SM Prime broke ground Friday for the 16-story office property, FourE-comCenter, which will make available 123,968 square meters in gross floor area (GFA) upon completion by 2020. Gross leasable area will be about 83,000 sq m.
The office property—designed to resemble crystal formations, with three adjacent towers springing from a common podium—is expected to generate P700 million in gross rental revenue yearly. Upon completion, SM Prime expects monthly rental rate per square meter in the area to range from P750 to P800, up from P600 to P620 at present.
The towers will have the distinct rhombic shape and flat and inclined surfaces layered over grids like gigantic crystals. Like the other E-Com buildings in the Mall of Asia complex, it will also feature a landscaped deck on the fifth floor podium.
The design itself is unique and an architectural “statement,” David Rafael, SM Prime senior vice president, adding that the group had put a lot of effort on the design of the project. “It is very modern with view of the sea,” he said in a briefing after the groundbreaking ceremony.
Four E-Com has a full basement, four-podium parking, and 11 office levels. Retailing space will be on the fifth and ground floors.
“The demand for office space remains aggressive, thanks to the continued economic growth of the country. Strong interest remains due to more investors realizing the potential of the Philippines for their business. Our job is to provide them with good office space for their operations,” said. This is the fifth office property to be constructed by SM Prime in this area and ground-breaking for the sixth may take place later this year, Rafael said.
“That tells you that we continue to be very bullish on the market. We think that this market volatility is temporary and will settle down eventually,” he said.
One, Two and FiveE-comCenter had been completed and 100 percent occupied at present while ThreeEcomCenter is scheduled for turnover by the third quarter of 2017.
The first five office property projects in Bayshore will have 645,000 sq m in GFA. Once the sixth tower is put up, the portfolio will expand to 800,000 sq m in GFA.
Rafael said Bayshore was aimed to become a leading central business district comparable to Makati and Bonifacio Global City. At present, rental rate in Bayshore is around 20 to 25 percent lower than Makati valuations.
About 85 percent of current office tenants in Bayshore are business process outsourcing and shared services hubs.
The latest project is seen to complement the growth and expansion of the Mall of Asia complex into a lifestyle hub.
“We are aiming to create a township that can stand on its own,” Rafael said.
