RLC starts work on 12th office tower

Robinsons Land Corp. Thursday broke ground for its 12th office tower at a prime Bonifacio Global City, as the company remained upbeat on sustained demand for office space from multinational and business process outsourcing (BPO) firms in the years ahead.

The 25-story Bonifacio Summit Center, RLC’s seventh establishment at BGC, will add 60,000 square meters to RLC’s office portfolio by the first quarter of 2017.

“I think the BPO growth in the Philippines is not fad. It’s a structural change. It’s a paradigm shift. It’s something we’ve been doing since the early part of the century,” RLC president Frederick Go told reporters after the groundbreaking ceremonies. “But this is not just for BPO but for every company” seeking large office areas.

The property firm of the Gokongwei family will have the largest typical office floor plate in the group’s portfolio at around 3,400 square meters.

The building will rise on a 5,000- square meter lot on Lawton Avenue leased from the state-owned Bases Conversion Development Authority for 25 years, with an option to renew for 25 years.

BCDA president Arnel Casanova said the government corporation was able to lease out the property for a “very good price.”

RLC, he added, has given an upfront lease payment for 14 years. The developer also has the option to purchase the property on the 24th year based on current appraised value.

The office space in the new building is expected to be leased out at an estimated rental rate of P800 per square meter a month, with a 5 percent annual escalation rate.

The building will rise beside the future government financial center in the area, where the headquarters of the Securities and Exchange Commission, Insurance Commission and BCDA will be built. Doris C. Dumlao