The offshore gaming industry— a boon to local property developers— is seen to bolster prospects in Aseana City.
Aseana City is a 107.5-hectare master planned reclamation development of D.M. Wenceslao & Associates, which is seeking to raise around P8 billion in an initial public offering (IPO) later this month.
Citing real estate consultancy firm Colliers International Philippines, the company said capital values had been rising steadily at Aseana, supported by low vacancy rates due to the lack of office space in the area.
“Even as new supply within the Manila Bay area is expected to increase with the addition of around 240,000 square meters of stock by 2018, overall vacancy is forecast to remain below 3 percent,” the company said in a statement.
“Offshore gaming companies are expected to take up new office spaces at Aseana in the coming months,” it added.
Traditional companies still had the most share at 40 percent of the total transactions for office spaces. This was followed closely by the offshore gaming industry at 35 percent.
There are 51 offshore gaming operators currently in the Philippines. Most are located in the Manila Bay area, typically occupying office spaces ranging from 10,000 to 30,000 square meters.
The developer said a key benefit for builders in Manila Bay was the presence of the Entertainment City complex, which has three completed casino resorts: Solaire, City of Dreams, and Okada Manila. The casinos are regulated by the state-run Philippine Amusement and Gaming Corp.
Pagcor’s gross gaming revenue rose 7.6 percent last year to P57.34 billion with the entry of offshore gaming operators. It earlier set a revenue target of almost P62 billion billion this year as it expects a boost from online gaming.
D.M. Wenceslao, which helped the government reclaim the land Aseana is built on, already has six developments at Aseana: Aseana One, Aseana Two, Aseana Powerstation, Aseana Town Center, Aseana Square and S&R.