PNB property arm eyes mixed-use redevelopment of Makati property

PNB Holdings Corp. (PHC), the real estate arm of Philippine National Bank (PNB), is preparing to redevelop key office assets to align with shifting tenant requirements, a company official said.

“PHC’s long-term vision includes enhancing our existing portfolio of prime properties, and we’re preparing to redevelop one of our most-ready assets in Makati soon,” PHC Chief Operating Officer Joselito R. Consunji said in an e-mailed reply to questions.

“Our properties already hold strong potential, and we’re looking at ways to unlock even more value through high-end, mixed-use developments that reflect the evolving needs of tenants and communities,” he added.

PHC owns three prime assets — two in Makati City and one in Pasay City — and maintains a 90% occupancy rate across its office, retail, and event spaces, with tenants from the information technology-business process management, healthcare, and retail sectors.

A new health and wellness brand is also set to open at the PNB Makati Center, following the expansion of homegrown fitness brand BeFit, Mr. Consunji said.

In Pasay City, PHC plans to use its office building along Diosdado Macapagal Boulevard as a venue for a cultural showcase featuring locally made products.

“The initiative highlights the growing role of our Bay Area property as a platform for cultural and commercial engagement,” Mr. Consunji said, noting that tenant interest in both Makati’s central business district (CBD) and the Bay Area remains strong.

He said both locations continue to attract businesses despite the departure of Philippine Offshore Gaming Operators (POGOs).

“While the broader Metro Manila office market has felt the impact of the POGO exodus, the Makati City CBD and Pasay City’s Bay Area remain highly attractive for businesses seeking strategic locations,” he said.

“These areas continue to be favored by industries such as IT and business process management, which benefit greatly from proximity to transport links, talent hubs, and essential infrastructure.”

Data from real estate services firm CBRE showed that the Bay Area and Makati City have an existing office supply of 417,600 square meters and 362,900 square meters, respectively, as of the second quarter.

Mr. Consunji added that PHC expects to maintain stable rental income and high occupancy by year-end, supported by the accessibility and attractiveness of its properties in Makati and Pasay. — Beatriz Marie D. Cruz