Property developer Ortigas and Co. is investing some P68 billion over the next 10 to 15 years to build a portfolio of residential, commercial and office projects within Metro Manila.
Joselito F. Santos, general manager of the real estate division at Ortigas and Co., said the planned spending would be used for six priority projects: The 20-year redevelopment of the Greenhills Shopping Center (P25 billion); the 10-hectare Capital Commons in Pasig City (P25 billion); the 10-hectare Circulo Verde, a mixed-use development in Quezon City offering sustainable, green living (P15 billion); the upgrade of Tiendesitas (P1 billion), and the construction of additional call center buildings in Ortigas (P2 billion).
Santos said the planned capital outlay would be funded by pre-selling proceeds, internally generated cash and debts. A public offering of shares, as another venue to raise funds, was not being considered at the moment, he added.
According to Santos, these projects, once completed, could boost the revenue contribution of the residential business segment of the company to about 50 percent from the current 30 percent. The bulk or 70 percent of the firm’s revenues come from the commercial segment of the business (retail and office space).
However, Santos admitted that the company was taking a “conservative” stance in embarking on new projects to give Ortigas better control of the various activities it was undertaking and preserve the value of investment.
“With the residential projects that we have, we’re more conservative. We have a better grasp of supply and we don’t flood the market with supply that may pressure values later down the line,” he noted. Once all the six priority projects have been completed, the company will still have about 50 hectares of land, located mostly in Pasig City and Quezon City, that it can develop further.
Ortigas and Co. is on track to completing the Viridian, its first residential condominium in Greenhills, by the second quarter of 2016. The 53-storey project is part of the 20-year redevelopment plan for the Greenhills shopping center.
Two new call center buildings near the existing Silver City building of Ortigas are expected to be completed by the third quarter of 2014, adding 20,000 sqm of office space for KPO companies.
The upgrade of Tiendesitas will entail the construction of three new buildings, the first of which (Building A) will be completed by the third quarter this year while buildings B and C will be completed by 2015.
The P25-billion Capital Commons will rise on the former site of the Rizal Provincial Capitol, comprising of a high-end shopping mall, cinemas, supermarket and the five luxury residential towers, the first of which will be the 64-storey condominium, The Royalton.