Developer Ortigas sets P12-billion capex

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The Galleon is a mixed-use, two-tower project that will soon rise in Ortigas Center. — HANDOUT

By Vincent Mariel P. Galang, Reporter

ORTIGAS & Co. is allocating around P12 billion for capital expenditures (capex) this year, the bulk of which will be used for the development of a new mixed-use project in Ortigas Center.

Jaime E. Ysmael, president and chief executive officer of Ortigas & Co., said this year’s capex is 33% higher than the P9 billion it spent in 2018.

“I think in the next couple of years, we’ll see P12 to P15 billion in capex, for the next five year as we pursue expansion plans,” he said during a briefing on Wednesday.

The property firm is investing P11 billion for its new office, retail and residential project called The Galleon. The high-end development is located along ADB Avenue, across the Asian Development Bank (ADB) headquarters. It will be accessible to two Metro Rail Transit (MRT) stations, transport terminals, and malls.

“A lot of the financing will come from pre-selling because we already own the land… any gaps… will be funded via income generated from other projects or borrowings, but we are confident that this particular project will self-funding,” Mr. Ysmael said.

“This particular parcel of land, we believe is ideal for development and sale because of its location and its unique attributes,” he added.

The Galleon will be developed in two phases, the first will be an office tower, while the second will be a residential building.

The Offices at The Galleon will be launched on July 21. It is expected to be completed by the fourth quarter of 2025. The residential condominium will be launched early next year.

“The Galleon will ‘set sail’ this year beginning with the office building that sustains our momentum in our growing office portfolio… We believe this will offer something new to investors and end-users who place a premium on convenience, accessibility, sustainability,” Mr. Ysmael said.

The Offices at The Galleon will have 31 office levels, and five levels of basement parking. Unit sizes ranges from 75 square meters (sq.m.) to 111 sq.m. for inner units; 113 sq.m. to 195 sq.m. for corner units; and 498 sq.m. to 526 sq.m. for penthouse units. Prices range from P20.9 million to P184.3 million. The first two floors will be dedicated for food and retail establishments.

Ortigas & Co. is pursuing Leadership in Energy and Environment Design (LEED) Silver accreditation for The Galleon, which is also expected to be compliant with Green Building Code.