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Demand from outsourcing firms lifts property sector as POGOs flee

THE property sector has seen increasing interest from the outsourcing sector since the fourth quarter last year, helping cushion the impact of the exodus of Philippine Offshore Gaming Operators (POGOs).

Leechiu Property Consultants (LPC) said the information technology and business process management (IT-BPM) sector led office property demand in the fourth quarter, posting 35,000 square meters (sq.m.) or 38% of demand.

The company said that it received a number of inquiries, as well as requests for site inspections and meetings from the IT-BPM sector, with most negotiations approaching finalization in the next few months.

LPC expected at least 23,000 sq.m. in transactions at least for office space in February, bringing the projected total of 77,000 sq.m. for the first quarter.

“The announcement of forthcoming vaccines has given everyone a fresh boost of hope. We’re seeing faster decision making among IT-BPM firms as they lay out plans for expansion not only in Metro Manila but also in the provinces,” LPC Associate Director Mikko Barranda said.

“We project that many of these negotiations are being finalized now or will be closed in the coming months.”

Locators are interested in spaces in Iloilo, along with renewed interest in Cebu and Pampanga, he said.

POGOs, which accounted for a significant demand in office space in 2019, posted no transactions since the start of the second quarter last year due to new tax regulations and the travel ban declared to contain the coronavirus pandemic. POGOs vacated 330,000 sq.m. of space from then until January this year.

But a Supreme Court decision in January on the tax guidelines may have stopped the POGO exodus.

“POGOs still maintain a significant presence in the Philippines. Perhaps by next quarter, we will know if they will start expanding again and contributing to the recovery of the property market in 2021,” Mr. Barranda said.

Almost half of those vacated spaces, LPC said, are those registered with the Philippine Economic Zone Authority (PEZA), which are “keenly desired by the IT-BPMs.”

“We foresee that those PEZA spaces will be back-filled by BPOs,” Mr. Barranda said. — Jenina P. Ibañez

GMA’s miniseries gets second season

THE DRAMA anthology series I Can See You returns for its second season on GMA. I Can See You, which first premiered in Sept. 2020, uses gadgets and social media to introduce the plot of the story.

The second season of I Can See You premieres with the episode “On My Way to You!” on Mar. 22 on GMA Telebabad. Meanwhile, I Can See You Season 1 is now available on Netflix.

The series returns with “On My Way to You!” as the first episode. Directed by Mark Reyes, “On My Way to You!” follows Raki (played by Shaira Diaz) turning back while walking down the aisle on her wedding day. After the video of her running away goes viral, she takes a vacation to escape the digital noise and meets Jerrick (Ruru Madrid).

During an online press conference with the cast on Mar. 9, director Mark Reyes described the concept of the runaway bride as a “major issue” in Filipino culture as it is expected for the bride to meet the groom at the altar on the wedding day.

In the episode, the guests at the wedding take videos and photos of Raki and these are widely circulated online. “Now that there is social media… everyone in social media will feast on you,” Mr. Reyes said of the character.

Mr. Reyes added that each episode of the anthology series will explore a different genre such as mystery, adventure, and romance.

Joining the cast are Malou de Guzman Arra San Agustin, Gil Cuerva, Ashley Rivera, and Richard Yap. — MAP

Hotel reopens as Davao City relaxes border restrictions

DAVAO CITY — Acacia Hotel Davao of Lucio L. Co.’s CHMI Land, Inc. has reopened after more than half a year of closure, signaling confidence in the soft resumption of the city’s tourism industry.

“Last June 2020, the hotel decided to temporarily close its doors to prioritize the safety of its valued clients, employees and for sustainability purposes,” said Acacia Davao’s Hotel Manager Agot Serrano in an interview via Messenger.

Davao City on March 8 adopted in full the latest National Government policy of eased local border restrictions, which means travel authority, medical certificate, and a negative coronavirus test result are no longer required.

“Now that we have already adapted to the new normal, the management is confident that the hotel can offer its heartfelt service with safety measures in place,” Ms. Serrano said.

To attract guests, the Acacia Hotel, one of the biggest in the city, is offering discounted rates until the end of March.

Luk Foo Palace Chinese restaurant and Waling Waling Cafe and Lobby Lounge are open for both hotel guests and non-staying visitors, but pre-booking is encouraged.

“Social distancing is observed at all times and there is a limit to the number of guests in rooms, function halls and in other areas to avoid mass gatherings. Our team made sure that the directives of the government are followed and hotel operations are adjusted on what is applicable,” she said.

Acacia Hotel Davao, which opened late November 2019, has 259 rooms and amenities include a swimming pool, gym, and function rooms.

The Davao City branches of other local and international hotel chains such as Dusit, Seda, and GoHotels have also been operating with adjustments to health protocols.

Tourism arrivals in the Davao Region dropped by at least 72% last year from over a million in 2019, according to the National Economic and Development Authority’s (NEDA) regional office.

NEDA-Davao Regional Director Maria Lourdes D. Lim, in a briefing in early February, said the tourism industry was the most affected by the coronavirus pandemic.

The region’s tourist receipts in the first three quarters of 2020 stood at P2.9 million, plunging 90% from P30.1 million in the same period the previous year.

Ms. Lim said the Philippine tourism industry as a whole is expected to slowly recover by 2022, with domestic travel as the main booster.

“Domestic travel will be the main priority as fewer people are likely to travel internationally in the near future and this is due to reduced income and travel budget in view of the pandemic’s impact on the economy,” she said. — Maya M. Padillo

Sta. Lucia Land eyes ‘conservative’ expansion in growth areas

Work-from-home arrangements spur residential demand

By Keren Concepcion G. Valmonte

STA. LUCIA Land, Inc. (SLI) plans to expand in what the company calls its “growth areas,” after seeing demand when people started working from home.

“It’s really more for expansion because if you notice those areas, we already have a presence there for the past years and decades, so we’re just expanding where we currently are,” SLI Vice-President for Corporate Planning and Investor Relations Mr. Jeremiah T. Pampolina told BusinessWorld in a phone call on Monday.

According to a disclosure last Friday, the property developer’s board of directors authorized the acquisition of several properties and has also approved plans of entering joint ventures for several projects.

“We’re being conservative. We are not in Metro Manila,” Mr. Pampolina said. “[We’re investing in] growth areas, as we call them. The emerging growth cities, that’s what we’re optimistic about.”

SLI will be acquiring a parcel of land in Davao del Sur with an area of 8,227 square meters (sq.m.) and a 25,000-sq.m. property in Iloilo. The company will also acquire land, which spans nearly 5,000 sq.m. in Batangas.

The company will be entering joint ventures for several of its project developments, including a Rizal property with an area of 5,866 sq.m., a 10,000-sq.m. project in Davao del Sur, a development in Lapu-Lapu City with an area of over 71,000 sq.m., and another property development in Batangas spanning 216,787 sq.m..

Meanwhile, its planned joint ventures with Sta. Lucia Realty & Development, Inc. were already approved by the company’s related party transactions committee. The projects included for the collaboration are a 39,076-sq.m. development in Cavite, another project in Rizal with an area of 526,270 sq.m., and some projects in Batangas with a total of 427,952 sq.m. of land area.

The company said these expansions are due to the demand posted when people moved back home because of the pandemic.

“It’s calculated because of what’s happening. It’s not as aggressive as what we did before, but we noticed that people are now [investing] in space, lots, and that’s our core competence,” Mr. Pampolina explained.

SLI also noted the shift to moving in areas like Cavite and Batangas, which are “not so far anymore.”

“That’s what our strategy would be. A bit conservative, but there’s still an opportunity in those areas,” Mr. Pampolina said.

The company has developments in Rizal, Laguna, Cavite, Batangas, Bulacan, Pampanga, Tarlac, Baguio, Palawan, Bacolod, Iloilo, Cebu, and Davao. SLI previously said it had about 99 ongoing projects with a total of 1,617 hectares of land as of December 2020.

SLI also disclosed that its board of directors authorized the issuance of up to P7-billion corporate notes, which will be used for debt financing.

“[For] the corporate notes, P2 billion of that would be [for] our upcoming series B bond which is due this March. The rest of the P5 billion is for the payment of existing long-term debts,” Mr. Pampolina explained.

In 2015, SLI listed P4-billion fixed-rate bonds series A due 2018 and series B due 2021 at the Philippine Dealing & Exchange Corp., which had a 6.7284% and 6.7150% rate per annum, respectively.

The property developer clarified that it would use “internally generated funds” to finance the expansions.

SLI shares at the stock exchange rose by 0.93% or P0.02 on Monday to close at P2.17.

Yields on Treasury bills climb across the board

BoT treasury
THE GOVERNMENT fully awarded the Treasury bills it offered on Monday even as yields climbed across the board. — BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday even as rates climbed across the board on lingering concerns over faster inflation.

The Bureau of the Treasury (BTr) raised P20 billion as planned via its auction of T-bills on Monday as total tenders reached P42.43 billion, more than double the amount on offer. The demand was slightly lower than the P44 billion seen during last week’s offering.

Broken down, the BTr borrowed the programmed P5 billion in 91-day debt as bids hit P13.458 billion. The three month papers fetched an average rate of 1.232%, up by 9.3 basis points (bps) from the 1.139% seen last week.

It also raised P5 billion as planned via the 182-day T-bills from P8.632 billion in tenders. The average yield of the six-month papers likewise spiked by 21.1 bps to 1.527% from 1.316% previously.

Lastly, the government made a full P10-billion award of the 364-day securities, with demand reaching P20.34 billion. The one-year papers were quoted at an average rate of 1.99%, up 13.8 bps from the 1.852% seen in the previous auction.

National Treasurer Rosalia V. de Leon attributed the higher T-bill rates to the market’s reaction to news of high inflation that is expected to peak in the second quarter.

A bond trader shared the same view, saying the “gloomy inflation outlook” is also a concern for other economies amid the ongoing global crisis.

“This brings to spotlight those economies that have negative real rates (interest rate less inflation),” the trader said.

The Philippine Statistics Authority (PSA) earlier reported that headline inflation hit 4.7% last month, picking up from 4.2% in January and the 2.6% print in February 2020.

The February rate brought the two-month average to 4.5%, already above the central bank’s 2-4% annual target.

The Bangko Sentral ng Pilipinas (BSP) has said inflation will likely only begin slowing down in the second half of the year. BSP Governor Benjamin E. Diokno has also signaled that the central bank will likely keep its monetary policy loose in the meantime to help the economy rebound faster.

“Domestic rates also trended up as US Treasuries adjusted upwards with good prospects of strong rebound with a stimulus package. Supply side constraints also push rates as we also see oil prices increasing,” Ms. De Leon said in her Viber message to reporters after the auction.

US President Joseph R. Biden, Jr. last week signed a new $1.9-trillion stimulus package that aims to fast-track the recovery of the world’s largest economy.

The yield on the benchmark 10-year US Treasuries inched down by 0.5 bp to 1.637% on Monday from 1.642% on Friday. Week on week, the tenor rose by 4.7 bps from 1.59% on March 8.

The BTr wants to raise P160 billion from the local bond market this month, broken down into P100 billion in T-bills to be offered weekly and P60 billion via fortnightly auctions of Treasury bonds.

The government is looking to borrow P3 trillion this year from local and foreign lenders to help fund its budget deficit that is seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

Robert Downey, Jr., Rudy Giuliani receive Razzie worst film nods

LOS ANGELES —  Hollywood superstar Robert Downey, Jr. and former New York Mayor Rudy Giuliani landed on the list of nominees on Friday for Razzie Awards, an annual shaming of what voters consider the year’s worst films and performances.

Mr. Downey, Jr. was in the running for worst actor for playing the title role in Dolittle, a movie remake about a doctor who can talk to animals.

Dolittle, released by Comcast Corp.’s Universal Pictures, tied for the most Razzie nominations with six overall including worst picture. It will compete with Netflix’s Polish erotic drama 365 Days which also received six Razzie nods.

Others contending for worst film included Music, directed by musician Sia about a young girl with autism, and a movie remake of TV show Fantasy Island.

Mike Lindell, chief executive of widely advertised company MyPillow and a vocal supporter of former President Donald Trump, was nominated for Absolute Proof, a film featuring baseless claims of fraud in the 2020 US presidential election. It also is competing for worst picture.

Mr. Giuliani made the Razzies list for his brief appearance in Sacha Baron Cohen’s mockumentary Borat Subsequent Moviefilm. The former mayor was filmed in a hotel room with an actress pretending to be a reporter. Mr. Giuliani has said nothing inappropriate happened.

The tongue-in-cheek Razzies, created in 1980, serve as an antidote to Hollywood’s glitzy Academy Awards ceremony. Winners of the Razzies will be announced on Apr. 24, the night before this year’s Oscars.

Razzie nominees and winners are voted for online by members from more than two dozen countries, who sign up online and pay a $40 membership fee.

This year, the Razzies announced a special pandemic-related award for 2020 as “The Worst Calendar Year EVER!” —  Reuters

Ayala Land offers commercial lots within South Coast City

AYALA LAND, Inc. (ALI) is developing a waterside commercial area called District Square in Cebu City.

District Square is located within the 26-hectare South Coast City, a project of SM Prime Holdings, ALI and Cebu Holdings, Inc.

The company is offering commercial lots, ranging from 1,777 to 2,601 square meters, which will be ideal for offices, hotels, and other businesses.

“Our aim is to build sustainable developments that contribute significantly to the local economy and provide a safe and healthy quality of life. District Square is a unique opportunity to build or invest, given the combined investment plans of both ALI and SM in South Coast City, the infrastructure program in the area, and the progressive Cebu market where master planned estates are hard to come by. We would like to invite partner locators to share in this vision and be part of seeing this through,” said Anna Ma. Margarita “Meean” B. Dy, senior vice-president and head of Ayala Land Estates Group.

South Coast City will have waterside views of Cebu Strait. There will be a pedestrian road network to link the main areas of the development. A 1.1-hectare civic park is also being developed, along with retail and entertainment concepts anchored by an Arena and Convention Center.

South Coast City broke ground in 2020.

Megawide increases capacity of ancillary businesses

By Arjay L. Balinbin, Senior Reporter

MEGAWIDE Construction Corp. on Monday said it is increasing the capacity of its ancillary business units, as it aims to take advantage of the opportunities brought by the government’s ongoing “Build, Build, Build” program.

“Our ancillary businesses are mainly innovative construction technologies like precast, cement batching, formworks, and construction equipment and logistics,” Megawide Corporate Communications Officer Anna Karenina M. Salgado told BusinessWorld in a phone message.

The company said in an e-mailed statement: “Megawide is… increasing the capacity of its ancillary business units under its engineering, procurement, and construction (EPC) platform to complement its… pre-cast technology.”

Megawide noted the government’s infrastructure projects, including the Malolos-Clark Railway Project, the North-South Commuter Rail Project-South Line, and the Subway System Project, “opened up opportunities and will be the driving force for its infrastructure pivot.”

“For precast, we’re adding to its production capacity, especially since it has been highly adaptable to new normal engineering requirements. This will also entail an increased capacity for our batching plant, which provides the primary ingredient for the precast products. Other businesses like formworks and specialized handling will enable us to increase efficiencies and perfect our services,” it said.

The company announced recently that it would be reallocating the use of proceeds from its P4.4-billion issuance of series 2 preferred shares last year.

It said the P1.2-billion allotment for the Ninoy Aquino International Airport Rehabilitation project would be rechanneled to the expanded scope of its existing projects.

Megawide shares closed 7.004% lower at P6.24 apiece on Monday.

RCBC to offer automated services in more branches

RIZAL Commercial Banking Corp. is expanding its digital banch network. — BW FILE PHOTO

RIZAL COMMERCIAL Banking Corp. (RCBC) is eyeing to expand its digital branches to over 200 this year to provide more efficient banking services.

The bank is looking to grow the number of its branches that offer automated services, it said in a statement on Monday. It said its Branch of Today (BOT) model utilizes a Robotic Process Automation and Application Program Interface that allows for self-service and automated banking transactions.

“As of now, we have 101 BOT-type branches. The plan is to convert existing branches to some form of BOT setup within the year,” RCBC Branch Services Segment Head Raul J. Uson said in an e-mail.

“The objective is to optimize customer experience in the branches by greatly reducing transaction processing time and going paperless which allows for quick but productive branch visits,” Mr. Uson was quoted as saying in the statement.

RCBC said with the ongoing coronavirus pandemic, it has converted more of its branches to its BOT model. The model has shortened the account opening process by digitizing the capture of clients’ information and reducing the documents and signatures required.

“The facility takes into account the required security protocols which include system-generated SMS (short message service) and e-mail notification to clients to validate mobile number and e-mail address, as well as capturing of biometrics for a more secure means of verification,” Mr. Uson said.

Once customer data are collected, they are transferred to digital storage facilities, the bank said.

Mr. Uson said the bank is working to automate more transactions, such as requests for bank certificates and ATM card replacement, as well as domestic and foreign telegraphic transfers.

RCBC also implemented a universal processing role to let its branch service personnel process all types of transactions, providing a single point of contact for customers, the bank said.

RCBC President and Chief Executive Officer Eugene S. Acevedo in December said they closed 66 branches in 2020 as 50-60% of onsite transactions disappeared amid the pandemic.

The bank also launched its Diskartech app last year which allows users to digitally open a basic deposit account.

The Yuchengo-led lender’s income dropped 7% to P5 billion in 2020 from P5.388 billion the prior year as it beefed up its loan loss reserves amid the pandemic.

RCBC’s shares closed at P17.10 apiece on Monday, down by 10 centavos or 0.58% from its previous close. — L.W.T. Noble

Lukashenko says Belarus may submit new Eurovision entry after backlash

KYIV —  Belarusian President Alexander Lukashenko said on Saturday that Belarus may submit a new entry to this year’s Eurovision Song Contest after the previous one, by a band known for mocking anti-government protests, was rejected as too political.

Featuring lyrics such as “I will teach you to toe the line,” the entry had sparked a backlash from opposition figures and fueled calls by a European Parliament lawmaker for Belarus to be suspended from the popular competition.

Eurovision’s organizers, the European Broadcasting Union, on Thursday threatened Belarus with disqualification if it did not submit a modified version of the entry or submit a new song.

To critics, allowing the original entry to be performed would have added legitimacy to a violent crackdown launched by Mr. Lukashenko against mass unrest that swept the country following an August election which demonstrators say was rigged to extend his 27-year rule.

To Mr. Lukashenko, it was another example of Belarus being besieged by outside forces. The veteran president has clung to power with support from traditional ally Russia and accused the West of fueling the protests to overthrow him.

“They are starting to press us on all fronts. Even at Eurovision, I see,” Mr. Lukashenko said, in his first public comments about the row. “We’ll make another song,” he said, adding: “You see that this is all politicized.”

He also commented for the first time on a film released this week by a Poland-based opposition news service that accused Mr. Lukashenko of spending hundreds of millions of dollars on a luxurious lifestyle. “I will never allow myself to steal something from people,” he said. —  Reuters

Semirara Mining and Power allocates P4-B capex for 2021

CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) has earmarked P4 billion for its capital expenditure (capex) program this year, with the bulk going to the purchase of equipment.

In a regulatory filing on Monday, the listed integrated energy company said P2.9 billion is allocated for the acquisition of mining and support equipment for its coal business, while the remaining P1.1 billion will be divided for the preventive and maintenance plans of Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp.

Maria Cristina C. Gotianun, SMPC president and chief operating officer, said the company is planning to recover this year as its coal and power businesses last year were hit by market weakness as a result of the coronavirus disease 2019 (COVID-19) pandemic. 

“However, the magnitude of our recovery will largely depend on how demand and prices will behave following the vaccination rollout, COVID-19 infection rates and loosening of quarantine restrictions,” Ms. Gotianun was quoted as saying.

For 2021, SMPC is aiming to produce 13 million metric tons (MT) of coal, which is almost equivalent to the company’s production last year when it had remedial measures in its North Block 7 in Molave Mine, Antique.

In December last year, the company voluntarily deferred its mining activities in the area to allow mining personnel and technical consultants to control water build-up in the sump of North Block 7.

For 2020, SMPC posted a consolidated after-tax net income of P3.29 billion, a drop of 66% as a result of lower revenues. Its total revenues last year fell 36.2% year on year to P23.3 billion.

Due to deferred mining operations, the company’s coal production last year fell 13.2% to 13.2 million MT against 15.2 million MT in 2019.

On Monday, shares of SMPC at the stock exchange fell 4.32% or 54 centavos to finish at P11.96 per share. — Revin Mikhael D. Ochave

Phase 1 of Mulberry Place completed

DMCI PROJECT Developers, Inc. (DMCI Homes) said it has completed the first phase of its Mulberry Place project in Taguig City on time despite the pandemic.

DMCI Homes in a statement said Marcelline is the last of the four towers to be completed.

Unit owners are expected to move in this month.

“With the turnover of Marcelline building, plans for the next phase of the project are now being finalized,” the company said.

Three other towers, Bengaline, Dui, and Cochine, already welcomed residents in August last year.

Mulberry Place occupies 1.9 hectares of Acacia Estates, which is located near the C-5 Road and the South Luzon Expressway.

“DMCI Homes is looking to expand the property to include more living spaces, amenities, and lush greeneries,” the company added.

The project already features a clubhouse, a lap pool and a kiddie pool, a fitness gym, lounge and game areas, and entertainment and function rooms. Mulberry Place also has a water station, laundry facilities, and a convenience store.

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