Megaworld fully leases 24 office assets across PHL townships

MEGAWORLD CORP. said it has fully leased 24 office assets across its townships in Metro Manila and key provincial hubs, reflecting sustained demand from information technology-business process management (IT-BPM) firms and corporate tenants for integrated office locations.

The assets cover about 430,000 square meters (sq.m.) of leasable space, including roughly 80,000 sq.m. allocated to IT-BPM firms, the company said in a statement on Monday.

“Demand for strategic office locations within our townships continues to be strong as more companies recognize the long-term advantages of operating within integrated developments,” Megaworld Global Offices Head Francisco Ma. D. Roxas said.

Metro Manila assets include buildings in ArcoVia City in Pasig and Uptown Bonifacio, McKinley Hill and McKinley West in Taguig. Provincial properties span Clark Cityfront in Pampanga; Iloilo Business Park in Iloilo City; The Mactan Newtown in Lapu-Lapu, Cebu; and Davao Park District in Davao City.

The company said the 24 offices are fully leased across its portfolio, with multinational firms, outsourcing companies, technology locators, financial institutions and corporate headquarters as key tenants.

Fortune 500 companies including JPMorgan Chase & Co., The Coca-Cola Company, Reckitt Benckiser Group Plc, Mead Johnson Nutrition Co. and Wells Fargo & Co. mostly occupy these office spaces.

Megaworld said its township model combines office, residential, retail, hotel and transport access to support tenant demand and workforce retention.

Consultancy CBRE Philippines ranked Megaworld as the top office developer by lease transactions in recent quarters, citing strong take-up in both Metro Manila and provincial markets. CBRE data showed Metro Manila take-up of 31,800 sq.m. and provincial demand of 20,400 sq.m., led by Clark Cityfront Tower 5.

Megaworld said office rental revenue rose 4% year on year to P3.8 billion in the first quarter, supported by stable occupancy and renewals.

The company’s office rental portfolio totals 1.52 million square meters of gross leasable area, with an 87% occupancy rate. The business process outsourcing sector accounts for 69% of occupied space, followed by traditional offices at 27% and serviced offices at 4%.

Total transactions reached 173,800 sq.m., including 27,700 sq.m. in new leases and 67,700 sq.m. in renewals.

Megaworld is expanding its office pipeline with projects in Bulacan, Bacolod and Davao, which will add about 51,000 sq.m. of new office inventory. — Juliana Chloe A. Gonzales