telecommunications companies

PLDT’s Smart Tower sells for $128 million

Ralf Rivas
PLDT’s Smart Tower sells for $128 million

REAL ESTATE. The Smart Tower in Makati City.

Photo from Sarah Brizuela on Google Maps

PLDT raises more capital than initially targeted in the deal. The tower will still be Smart's headquarters for the next 5 years as specified in a leaseback agreement.

PLDT’s Smart Tower in Makati City was sold for $128 million (around P6.15 billion), considered as the largest real estate transaction for 2020.

Consunji Group’s DMC Urban Property Developers purchased the 37-story property, which has a floor area of 38,000 square meters.

PLDT chief Manuel V. Pangilinan raised more funds than what he initially targeted. He earlier said that he was aiming to raise at least P5 billion from the sale to finance expansion plans.

JLL Philippines, the firm that advised PLDT on the sale, said on Friday, December 11, that the corporate headquarters of Smart will still be in the tower for the next 5 years, as specified in a leaseback agreement.

The Smart Towers currently houses PLDT’s Smart and leases some of the space to retailers.

“Investor appetite for grade A assets in the Metro Manila area has remained high throughout an unpredictable year. The sale of the marquee Smart Tower reinforces the long-term confidence in the office market and the ambitions of corporate occupiers to reimagine their real estate holdings,” says Christophe Vicic, JLL Philippines country head.

In 2019, Pangilinan told BusinessWorld that PLDT may transfer its headquarters to the southern part of Manila, but the idea was a “big debate” internally.

Plans of moving out from the Makati headquarters to a much taller tower were floated back in 2017, but employees pushed back.

The Philippine Competition Commission has cleared the transaction, saying that the purchase will not lead to competition concerns on office space leasing in Makati and Bonifacio Global City (BGC) in Taguig.– Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.