MANILA, Philippines – Real estate developer Ortigas Land will go public within the next five years. But before they do so, they will have to build the confidence of investors first.
Ortigas Land chief executive officer Jose Emmanuel Jalandoni said they have to weave a good narrative for investors by improving current developments and building more before the company conducts its anticipated initial public offering (IPO). The current bloodbath in the equities space amid global uncertainties was also a big factor in their planning.
Jalandoni said they are eying to tap capital markets within the next five years, either through an IPO or a real estate investment trust (REIT) sale.
He also added that the company is aiming to double revenues within the said period.
Talks of an IPO date all the way back to 2012. During that time, the company was called Ortigas & Company, and Ayala Land and SM Prime were still working on acquiring a majority stake.
Ortigas Land currently has a land bank in the Ortigas Center, Circulo Verde, Capitol Commons, and Greenhills Center. The company is aiming to grow its estates from four to six.
Ortigas Land has around 200,000 square meters (sqm) of office space and 250,000 sqm of mall space.
The Greenhills area is set to get a facelift to somewhat catch up with the other more upscale estates of Ortigas Land.
“We have to upgrade the whole Greenhills,” Jalandoni said in a recent briefing with reporters. But he noted that the popular tiangge (bazaar) would remain.
Meanwhile, Capitol Commons, which has several luxury condominiums, offices, and Estancia Mall, is soon to get more foot traffic as a station of the Metro Manila subway is currently being constructed in the area.
Ortigas Land is also banking on revenge spending to prop up demand for The Galleon, a mixed-use development in the Ortigas central business district.
“We’re seeing returning market interest in property following relaxing restrictions as the economy recovers. Market insights for investments also validate our prioritization of increased sustainability and community development, even before the pandemic, for our new projects,” said Jalandoni.
The Galleon currently has a 50% take-up for its residential units and a 70% take-up in the office segment. – Rappler.com