MANILA, Philippines–Ayala Land’s mid-market property unit Avida has unveiled its second office condominium project: a 26-story boutique office building in Bonifacio Global City (BGC) which brings to the property market P4.4 billion worth of additional office space.
The new project, Capital House, targets small and medium enterprises (SMEs) wanting to purchase rather than rent small office space. A total of 25,000 square meters will be offered for P160,000/sqm.
The units will be turned over by 2018, Herbert Herrero, senior division manager at Avida Land Corp., said in a briefing on Wednesday.
“It’s practically the smallest of its type in BGC where most office developments are bigger,” Herrero said.
The project targets design firms, advertising agencies, holding companies and front-end offices of manufacturing and trading offices. “For businesses that think they will exist for 10 years, it will be reasonable for them to buy office space as it sort of mirrors their rental costs,” Herrero said.
Another market for this project would be the yield-seeking investors.
Based on an assumed monthly rental of P950 per square meter once the building is completed, Herrero said estimated yield would be 8 percent per year.
Office units are for sale with prices ranging from P9.9 to P25.6 million. Capital House will offer 222 units ranging from 62 to 159 sqm, with special whole floor units at 1,400 sqm.
“BGC is the fastest-growing central business district in the country today. More companies are seeking it as their business address. Aside from its business-friendly environment, it is home to a number of lifestyle and health, entertainment hubs, and other institutions which make it a desirable address for companies, employees and residents alike,” said Pol Tanco, Avida project and strategic management group head.
“But the offices available in this market mostly cater to business process outsourcing (BPOs) and multinationals. Most offices here typically offer units with modal of 250 sqm. Capital House offers the right fit for SMEs, professional firms and those looking to have satellite offices with a BGC address,” Tanco said.–Doris C. Dumlao