By Keren Concepcion G. Valmonte, Reporter
D.M. WENCESLAO & Associates, Inc. (DMW) is expecting “exponential” growth for the company as more of its projects are completed this year.
The property developer is aiming to end the year with a 240,000 square meters (sq.m.) in gross leasable area (GLA), DMW Chief Executive Officer Delfin Angelo C. Wenceslao said.
He said he expects an “exponential” growth “considering the amount of supply that [DMW is] putting into the market.”
“It’s not just 10%, 15%. From 90,000 sq.m. [of office GLA] in 2019, we’re currently already at a 160,000 sq.m. and 240,000 sq.m. by the end of this year,” Mr. Wenceslao said in an interview with BusinessWorld on Feb. 4.
The company expects Parqal, its “first truly mixed-use development,” to be completed by the third quarter, adding 70,148 sq.m. to its GLA. It is located within DMW’s Aseana City, located along Manila Bay in Parañaque City.
“It’s a mix of retail office and public space and we want to highlight this public space because 60% of that current development is actually dedicated to outdoor accessible, weather and climate protected public space, which I think is going to add extreme value to the developments already in the area,” Mr. Wenceslao said.
DMW noted that logistics and traditional companies are taking up the bulk of its office portfolio.
Mr. Wenceslao noted that most tenants are those moving from “pre-war buildings” to the company’s newly built offices for “the same rates.” DMW added several pandemic contingencies to its office buildings, including air filters, automated doors, among others.
The company was able to maintain its occupancy rate at 89% as of end-September 2021, leaving a vacancy of 11%.
DMW expects its office vacancy rate to rise with the recent completion of its 8912 Asean Ave., which added 69,284 sq.m. of GLA.
“We expect vacancy rate to rise only because of the huge addition of supply from 8912 Asean Ave., which only came online in the fourth quarter last year and is still yet to achieve stable occupancy,” Mr. Wenceslao said.
These office developments form part of the company’s 107.5-hectare Aseana City project.
For the residential segment, DMW is developing a four-tower condominium called MidPark Towers. This will be DMW’s second residential project inside the city after Pixel Residences.
The company still has 4,200 sq.m. of “non-core” plots to sell in Aseana City.
“We’re willing to let go of certain plots if we feel that these are uses which we won’t necessarily undertake ourselves or it’s something that we feel could add value to the community,” Mr. Wenceslao said. “We want to be able to provide a variety of brands and uses to our existing and future office or residential locators.”
DMW has completed two 1,790 sq.m. land sales in Aseana City, and inked a 25-year lease contract with Landers for a 15,064 sq.m. plot.
“Our leasing businesses will continue to account for the majority of our earnings. Residential sales are meant to replace land sales moving forward,” Mr. Wenceslao said.