Post on 18-Dec-2014
description
transcript
Investing in Office Condominium
Presented byMelo PorciunculaKMC MAG Group
Who We Are
KMC MAG Group, Inc. is an award winning real estate
services firm and headquartered in Bonifacio Global City.
A real estate services provider, KMC has quickly become one
of the leaders in tenant representation.
Savills is a global real estate services provider listed on the
London Stock Exchange. They have an international network
of more than 500 offices and associates throughout the
Americas, the UK, continental Europe, Asia Pacific, Africa
and the Middle East.
KMC's sister companies provide seamless services.
Who We Are
Economic Overview
• Rapid Growth of Philippine Economy in 2013
• GDP at 7.8% in Q1• Strong macroeconomic fundamentals
- Continuously expanding BPO sector
- Growing private consumption- Government investments
- Growth in the tourism sector
Economic Overview
• Construction – the best performing industry for the 2Q 2013
• Growth achieved through PPP (Private Public Partnership)
• Outflow of foreign portfolio investments from $2.4 billion to $2.6 billion
• Stock index declined almost 22.0% from the all-time high of 7,403.65 basis points
There are 19 emerging business districts
with approximately 1,300 hectares of
developed land in Metro Manila.
MakatiBGC
Ortigas Center
• Century City
• McKinley Hill
• SM Mall of Asia Complex
• Metropolitan Business Park
• Newport City
• Aseana IT Business Park
• Asiaworld City
• Madrigal Business Park
• Filinvest Corporate City
• Nuvali Canlubang
Market Overview
• UP Techno Hub
• Eton Cyberpod Centris
• Eastwood City
• Araneta Cyberpark
• Greenhills Redevelopment
• Rockwell BPO Complex
• EDSA Central
• Robinsons Cyberpark
• Rockwell Center
Metro Manila
Composed of 15 Cities and One Municipality
Education hub of the Philippines.
— Has 27 universities and 18 colleges
3 Railway stations (LRT1, LRT2, & MRT)
3 Major Central Business Districts
— Bonifacio Global City, Taguig
— Makati City
— Ortigas Center, Pasig City
Market Overview
Makati City
Market Overview
Market OverviewOrtigas Center
Market OverviewBonifacio Global City
Market Overview
Market Overview
Market Overview
Market Overview
Market Overview
Why Invest in Office Condominiums?
Why not?
32,000
• There are expected 32,000 residential units for turn over within Metro Manila in 2013
• Makati to have the most number with nearly 10,000 units.
• Followed by Quezon City with 7,000 units.
Advantges
• Better ROR • Smaller market to compete in • Relatively longer lease terms • Less Maintenance• Corporate Clients • Consistent Yields • Regular escalation of rent
Challenges
• Taxes A & O• Administrative Requirements • Higher Cost to enter • Limited inventory • Limited preferred locations • Future proofing your inventory
Size matters
32.91%17.32%12.16%6.19%6.77%
12.27%12.38%
301-500sq.m501sq.m and above
Leads From J an - J une
Commercial40-100sq.m101-150sq.m151-200sq.m201-250sq.m251-300sq.m
TYPE 36 SQM 1BR 80 SQM 2 BR 303 SQM 3 BR 1500 SQM HOUSEPRICE 6,120,000 13,600,000 45,450,000 225,000,000 MO. RENT 30,000.00 65,000.00 190,000.00 450,000.00 ROR 17.00 17.44 19.93 41.67
RESIDENTIAL
TYPE 100 SQM 250 SQM 500 SQM 1000 SQMPRICE 12,500,000 31,250,000 61,000,000 119,000,000 MO. RENT 70,000 175,000 350,000 675,000 ROR 14.88 14.88 14.52 14.69
COMMERCIAL
ROR
ROR
Internal Rate of Return
Residential Commercial
Things to consider
• Location• Ownership structure • Capacity to Maintain the property • Cash Flow • Exit Plan
Developers withOffice Condominium Developments
Questions
Thank You