Megaworld books 415K sq m of office leases

Megaworld Corp., the property development arm of businessman Andrew Tan, on Thursday said it booked around 415,000 square meters of office leases since the start of the pandemic last year.

The company said around 60 percent of these lease contracts booked since last year were renewals while the remaining 40 percent were new leases, mostly from the information technology and business process outsourcing (BPO) sectors.

However, the company’s rental revenues for the first half were still lower compared with last year’s figure as its occupied office space remained the same at around 1.26 million square meters.

Revenues from rent, which includes those of shopping malls, reached P4.27 billion for January to June, down 44 percent from last year’s P7.71 billion.

The company said during the first semester, new leases and renewals were booked in Eastwood City, McKinley Hill, Uptown Bonifacio, Mactan Newtown in Cebu, Southwoods City in Biñan, Laguna and Davao Park District in Davao City.

“Around 80 percent of these leases in the first half of the year were renewals. This means, BPO companies opted to stay and held on to their spaces. This also clearly indicates the strength and resilience of the office market within our pioneering townships,” Kevin Andrew L. Tan, the company’s executive vice president, said.

Earlier this year, Megaworld has fully leased its Southwoods Office Towers inside the 561-hectare Southwoods City after an American renewable energy company and a BPO company specializing in customer care solutions took the remaining spaces.

In Davao City, four levels of the Davao Finance Center inside the 11-hectare Davao Park District have also been leased to one of the largest BPO companies in the country during the first half of this year.

“The township model is our advantage. These consistent take-ups of office spaces even in the middle of community lockdowns are not just in Metro Manila but also in key growth centers in the provinces. We are very happy and optimistic about how the office sector has so far been performing better than expected,” Tan said.

The occupancy rate of its premier offices remains at 90 percent, with some of its townships reaching 100 percent, such as Iloilo Business Park, the company said.

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