P50 billion earmarked for Ortigas East property development
MANILA, Philippines – Land developer Ortigas & Company announced plans to redevelop its Frontera Verde property along Ortigas Avenue and Julia Vargas Avenue into a new estate which it envisions as a natural extension to the Ortigas Central Business District base.
The 16-hectare estate, now renamed Ortigas East, will have residential and commercial components.
Ortigas & Company president and chief executive officer Jaime Ysmael said on Wednesday, March 14, that the total estimated cost for the project is P50 billion. The redevelopment will be broken down into 3 phases spread over 15 to 20 years.
The first phase, which involves office-for-sale, residential, and retail components, started early this year and will last until 2025, at an estimated cost of P18 billion.
"When the redevelopment is fully completed, around 46% will be allocated for residential, with 54% going to commercial, office space, and maybe even a hotel development," Ysmael said.
The Ortigas & Company head also noted that they will set aside 40% of the total property to open spaces such as parks and roads, including a 6-lane boulevard for vehicles and bicycles.
Ortigas East will also feature a multi-modal transport terminal with entry and exit points situated along the Ortigas, C5, and Julia Vargas avenues.
New office tower
Kicking off the redevelopment will be the 34-storey Glaston Tower which Ortigas & Company noted is its first office-for-sale building.
The tower is planned to have 25 office floors with food and retail establishments on the first few levels, along with 8 levels of podium parking space and basement parking. The unit sizes are 76.88 square meters to 141.88 square meters, with prices ranging from P13.5 million to P29 million.
"We thought it appropriate to start with the office component given our reading of the market. There has not been any major new office-for-sale buildings that have been constructed within the Ortigas area. The market for office-for-sale is very similar to the market for residential especially when it comes to the investor market. That's really the market we are tapping into," Ysmael explained.
"We feel like the market is big enough given the lack of product and low occupancy rates around the Ortigas business district in general," he added. "The retail or mall component along with residential buildings will happen soon after the office."
The Ortigas & Company head added that the retail component will be highlighted by a mall with 104,000 square meters of gross leasable space. According to Ysmael, they have already secured global anchors like Decathlon, the world's biggest sports retailer.
Ysmael also noted that Ortigas & Company will largely fund the first phase using its balance sheet, facilitated by pre-selling. – Rappler.com