CYBERZONE Properties, Inc. (CPI), a unit of Filinvest Land, Inc., is building more office projects as business process outsourcing (BPO) firms pursue their expansion despite the protectionist policy of United States President Donald Trump, allowing the company to triple its revenues by 2020.
CPI President Joseph M. Yap told reporters on Friday the office segment will generate P6 billion in revenues by 2020 when it would have completed a plan to triple its gross leasable area (GLA) to 493,720 square meters (sq.m).
At the moment, CPI has 18 office buildings with 239,823 sq.m. of GLA, generating P2 billion in annual revenues.
The developer of office space remains bullish about the prospects of the BPO industry despite the slowdown in absorption from this market segment.
Deals with BPOs covered a GLA of 81,400 sq.m. in Metro Manila during the first quarter, 35% lower than the take-up a year earlier, according to data from property consultancy firm Colliers International Philippines.
“Right after the election of [United States President Donald] Trump — because of his talk on protectionism — most of the BPOs, especially the American ones, were a little bit hesitant to do too much planning for expansion, but in terms of actual take-up wala namang slowdown,” Mr. Yap said.
“Now that people are more comfortable, they don’t see all the talk of Trump will translate into a significant effect in the BPO industry. People are now more confident, optimistic, so they are doing their expansion,” he added.
This year, CPI is adding nearly 103,000 sq.m. of GLA to its portfolio through three new buildings — Vector Three and Axis Tower One in Northgate Cyberzone Alabang and Tower 2 in Cyberzone Cebu.
CPI raised P6 billion from its maiden capital market issuance to fund an aggressive build-up program involving the construction of five additional buildings in Filinvest City, Alabang and three new towers in Lahug, Cebu City.
The base size of P5 billion was 2.65x oversubscribed, prompting the company to exercise the oversubscription option of P1 billion.
The company pegged the interest rate for the 5.5-year bonds at 5.0496% per annum. Philippine Rating Services Corp. (PhilRatings) assigned a top credit rating to the debt securities.
BDO Capital & Investments Corp., BPI Capital Corp., EastWest Banking Corp., and First Metro Investments Corp. serve as the joint issue managers, bookrunners, and lead underwriters, while PNB Capital and Investments Corp. and SB Capital Investments Corp. are the co-lead underwriters for the bond offer.
Shares in FLI added three centavos or 1.76% to close at P1.73 apiece on Friday. — Krista Angela M. Montealegre
