I. Global Trends

II. Quezon City – Central Business DistrictI. Background and Location

II. District Plans

III. Vertis NorthI. Background and Location

II. Commercial and Residential Plans

III. MRT7

IV. SWOT Analysis of Vertis North

V. Recommendations

Outline

1. To familiarize ourselves with the global trends that may affect the Philippine market so we can respond proactively

2. To evaluate upcoming competitor developments in order to come up with strategies to respond to the emerging market

3. To generate foot traffic, rental income and sales revenue (for tenants) for SM North EDSA

Objectives

Destination shopping

Traditional market shopping

Source: http://blog.euromonitor.com/2011/11/the-battle-of-mall-culture-versus-traditional-market-shopping-what-do-north-american-consumers-think.html

VS.EnvironmentalismSocial responsibilityHealth and wellnessA search for “authenticity”

Usually a mallOne or more buildings forming a complexInterconnected walkways to have an easier flow and access from one point to anotherHas a parking areaHouses various merchandisersIndoor version of the traditional marketplace

Source: http://blog.euromonitor.com/2012/03/top-10-consumer-trends-of-2012.html

• City living reigns

• Consumer vigilantes

speak up

• DIY Life

• Emerging market

shoppers

• Green Thrift

• Reality culture and

consumers

• Smartphone universe

• Tech lifestyles vs. slow

living and the best of

both

• Youth – future imperfect

• Weight as a hot topic

Top 10 Consumer Trends of 2012

“This will be the highest and most modern

development catering to the north.”-Ayala Land President Antonino Aquino

Envisioned as a world-class, highly transit-oriented,

mixed-use community, walkable, vibrant night and

day, with easy access to amenities that make urban

living comfortable, convenient and ecologically

compliant.

• P22B project between NHA and Ayala Land, Inc.

• Development sprawls more than 250 hectares

• QC CBD is called Triangle Park

• With use of at least 3 mass transit stations

• Frontage longer than existing CBD

• Environmentally compliant CBD

• Triangle Exchange – Most attractive for retail and wholesale businesses

– Direct links to transport lines

Source: http://www.quezoncity.gov.ph/index.php?option=com_content&id=411&Itemid=374

5 districts:CommonsDowntown HubEmporiumResidences at VeteransTriangle Exchange

COMMONS DISTRICT

Size and Location

18.2 hectares

Located on north-eastern corner

Bounded on the north by North Avenue, east by the Elliptical Road, southeast by Quezon Avenue and southwest by the proposed new Park Lane, flanking the Downtown Hub District

Present: Site of Ninoy Aquino Parks and Wildlife

COMMONS DISTRICT

Land Use and DesignNinoy Aquino Parks and Wildlife to be developed furtherHigh level of visual interestCreate a diverse skyline

DOWNTOWN HUB DISTRICT

Size and Location

58.46 hectares

Located on north-eastern corner

Bounded on the northeast by North Avenue, east by the Elliptical Road, east by Commons District and Elliptical Road, southeast by East Avenue and southwest by Agham and BIR roads

Present: Institutional uses

Philippine’s Children’s Hospital, Lung Center, National Kidney Institute, government institutions (Bangko Sentral, BIR, PAGASA weather bureau)

DOWNTOWN HUB DISTRICT

AccessibilityEast AvenueQuezon AvenueBIR Road

DOWNTOWN HUB DISTRICT

Land Use and DesignMixed use medium density district with institutional services and facilities

Medical, Education, Training, ScienceIntegrated with commercial and residential developmentsHopes to complement the adjacent parks and open spaces encouraged to have horizontal mixed uses to be compatible with the less dense intensity and larger blocks and lotsWith single-use buildingsBuildings along main access road encouraged to be vertical structuresDowntown Hub District Greens as local point and landmark

DOWNTOWN HUB DISTRICT

Density and Floor Area Ratio

Blocks approximately 100m x 100m

Setbacks allowed to enhance park-like feel

Parkway containing mixed use retail (ground level) has no setbacks

FAR ranges from 4.5 to 5, decreasing from Agram/BIR roads to Elliptical road

Building heights range from 10 to 15 storeys in similar decreasing fashion

Population of 2.25M persons intended for district at the end of 20-year horizon

DOWNTOWN HUB DISTRICT

HEALTHCARE SUB-DISTRICT•Block main entrance spine

from East Avenue•Medical centers to be

clustered here (Lung Center, Kidney Institute)

PARKWAY SUB-DISTRICT•Mixed use retail and

residential areas

MIDTOWN SUB-DISTRICT•Mixed use institutional uses

EMPORIUM DISTRICT

Size and Location

49.5 hectares

Situated in the northeast of the Triangle Exchange district

Bounded on the northwest by the Residences district, on the northeast by the Agham and BIR roads, southeast by East Avenue and southwest by the Triangle Exchange district

Present: BIR, Revenue Computer Center

EMPORIUM DISTRICT

AccessibilityAgham RoadBIR Road

Land Use and DesignMixed use medium density districtFocused on IT activities, e-government, public, voluntary, international and/or services with commercial and residential developments

EMPORIUM DISTRICT

Density and Floor Area Ratio

FAR is 12 to 16

Buildings heights range from 24 to 40 storeys

EMPORIUM DISTRICT

GOVERNMENT CENTRE E SUB-DISTRICT

SOUTH SUB-DISTRICT

Common elements with Triangle Exchange

•Street framework

•Block size

•Open space network

Differences

•Type of locators

•Streetscape elements

•Pavements and trees

•Devoted to BPO offices and 24 hour business centres

•Population expected to reach 110,000 in the 20-year dev’t period

RESIDENCES DISTRICT

Size and Location

Located at the northwestern tip of the Emporium District, just off the creek that traverses the North Triangle

Bounded on the northwest by North Avenue, on the northeast by Agham road, southeast by the creek and southwest by the main access road from North Avenue

Present: The Occupational Safety & Health Center, North Agham Fore Station

RESIDENCES DISTRICT

Land Use and Design

To accommodate QC CBD’s residents

Expected to provide housing choices, varied open spaces for recreation, leisure and congregation

Good connectivity to Triangle via public transit and pedestrian networks

High rise condominiums and lower density town homes

Proposed major land use

Mixed use residential

Mixed use with retail

RESIDENCES DISTRICT

Density and Floor Area Ratio

FAR is 5.4 to 5.8, decreasing towards North Avenue

Designed to have 880,000 in population

Blocks measure around 150x150m

TRIANGLE EXCHANGE DISTRICT

Size and Location

62.3 hectares, spanning the North and East triangles

Located at the southwestern point of the Triangle Park

Bounded by EDSA on the southwest, North Avenue on the northwest, Emporium District on the northeast and East Avenue on the southeast

TRIANGLE EXCHANGE DISTRICT

AccessibilityKamuning StationQuezon Avenue StationNorth Avenue Station

Land Use and DesignLargest frontage along EDSAHighest densities in Triangle ParkBest regional link and commuter accessSeen to be most active areaDaytime office and service environmentDining and recreational center at nightOffices, shopping, recreation, transit-oriented residential developments are encouraged

Density and Floor Area Ratio

FAR is 12 to 16

Highest around the District Green at 16

Building heights up to 40 storeys

FAR of 14 and 12

Building heights up to 24 storeys

Blocks range approximately 50 meters in depth by 100 meters in length

TRIANGLE EXCHANGE DISTRICT

TRANSIT SUB-DISTRICT•Because of MRT stations that line the

area

JUNCTION SUB-DISTRICT•Where North Avenue and Mindanao

Avenue meet

GOVERNMENT CENTER SUB-DISTRICT•Southernmost tip of Triangle Exchange•Served by Kamuning MRT Station

•Envisioned to be the access point to national •and government agencies in the vicinity

SOUTH SUB-DISTRICT/CENTRAL SUB-DISTRIC T

•Area around the Triangle Exchange District Green

•Contains regional ground floor uses

E SUB-DISTRICT•Area served by Quezon Avenue

Station•Deemed to be the IT hub of the

project due to the IT locators in the area

NHA owned property

•To displace 15, 000

informal settlers

Relocation site:

Montalban &

Rodriquez, Rizal

Source: http://www.gmanetwork.com/news/story/202691/news/nation/planned-qccbd-to-displace-over-15-000-familieshttp://www.gmanetwork.com/news/story/201693/news/nation/qc-north-triangle-residents-hold-vigil-vs-impending-demolition

Vertis North

• Projected completion: 2020

• Joint venture of Ayala Land (72%) and NHA (28%)

• Value of land: Php70,000/square meter for the 250.6 hectare property

• Total of P65B investment

Vertis North

• To produce 200,000 new jobs in life cycle

• 1st phase: To cost P12B

– 7 hectare land area

– Offices, hotels, residential

• Total gross floor area of 220,000 square meters for BPOs, hotel and retail shops

Vertis North

• 1st stage

– TriNoma Mall (2007)

– 1st building in 54.3 hectare land in the Triangle Exchange

Vertis North

• Demolition of following offices:

– Office of the Ombudsman, Sugar Regulatory Administration compound, National Food Authority National Office, Mines and Geosciences Bureau, Protected Areas and Wildlife Bureau, National Power Corporation, Bureau of Internal Revenue, National Printing Office, Bangko Sentralng Pilipinas, Land Transportation Office and Land Transport Franchising and Regulatory Board

• 45 skyscrapers

• Half to be residential condominiums

• Other half – offices, hotel, retail

• Lifestyle boutique hotel by Ayala: Kukun

Source: http://www.vertisnorthquezoncity.com/

Distance from SM North EDSA to Vertis North

-Average of 2km via car-20 minute walk

FISHER

MALL

ETON CENTRIS

VERTIS NORTH

SM NORTH EDSA

P4M worth

of property

P8-20M

worth of

property

No renting for

commercial

space

30-60 sq.m.

90-300 sq.m.

P88,888.89

P71,794.87

COMMERCIAL SPACES

TOTAL LAND AREA:

8,971 sqm.Situated in Vertis North

along EDSA, the new City Center in Quezon City

First residential towers in the ALI Vertis North

development

Architectural Design:Modern Contemporary

Site Development Plan

G/F : Lobbies, Retail Units, 23 Residential Parking

1st Podium Level : 59 Residential Parking Units

2nd Podium Level : 59 Residential Parking Units

3rd Podium Level : 58 Residential Parking Units

Amenity Level, 1st

Residential Level

22 Residential Levels (534 Units)

TOWER 1

4 Special Units(Unit 17 of 18th to 21st Floor)

2,430 residents

Casual Dining

ResidentialOffices (BPOs) Event Hall

Dining, lifestyle & entertainment

Commercial Center

Commercial Spaces

Property Size: 172222 square feet

Size Range: 2690 - 21527 sq. ft.

Eton Cyberpod Centris

• 1st PEZA-registered office building • Self-sufficient community where people can live, work and play

without having to travel very far• Comprises 16,000 square meters of office space spread across eight

2,000 square meter floor plates• Direct link to the Quezon Avenue MRT Station• Accessible via all forms of public transportation• Approximately 5-8 minute walk to North Avenue MRT• 10-15 minute ride to University of the Philippines and Ateneo de

Manila University• 5 minutes away from SM North EDSA and Trinoma• BPO locators will be able to take advantage of the vast labor pool in

Quezon City as well as nearby cities (Manila, Pasig and Caloocan)

22-km train line with 14 stations

San Jose del Monte, Bulacanto SM North EDSA

17-km six-lane road from Marilao to MRT depot in Tala, Bulacan.

Will serve an estimated 2M commuters

Sources:

Inquirer Business http://business.inquirer.net/59671/mrt-7-construction-on-track

InterAksyon http://www.interaksyon.com/business/61111/neda-endorses-mrt-7-project-for-pnoys-approval

Proponent: San Miguel Holdings Corp.

Contractor: DM Consunji Inc. and Marubeni Corp. (Japan)

Concession: Universal LRT Corp.

Cost: $1.23 billion

Partially funded by Japan International Cooperation Agency (JICA)

Sources:

ABS-CBN News http://www.abs-cbnnews.com/business/01/07/13/dof-smc-agree-changes-mrt-7-concession-agreement

Inquirer Business http://business.inquirer.net/59671/mrt-7-construction-on-track

Philippine Information Agency http://www.pia.gov.ph/news/index.php?article=2311365931897

42 months for completion, according to DMCI Spokesman Elery Mendoza

Construction was scheduled to begin in 2010 but was delayed

As of May 2013, project has been endorsed to the President by NEDA (National Economic and Development Authority)

Sources:

InterAksyon http://www.interaksyon.com/business/61111/neda-endorses-mrt-7-project-for-pnoys-approval

http://www.interaksyon.com/business/53840/after-5-years-in-the-back-burner-govt-revives-mrt-7-project

Rappler http://www.rappler.com/business/5421-japan-s-marubeni-to-build-us$1-b-mrt-extension-project

SWOT ANALYSIS

Envisioned as a CBDBy a renowned developer (Ayala Land)Mixed use development (offices, retail, hotels)Has a residential community (both high rise and mid-level)Government institutions in other districts of Triangle ParkWill have an established and regular marketHigh foot trafficEasily accessible from various points (4 main roads along QC – EDSA, North Ave., Quezon Ave., East Ave.)Accessible for both pedestrians and those with private carsGood market attractivenessDay and night use of leasable storesConstruction of BPO offices

Had to relocate informal settlersBad PR due to relocation of slumsDelayed ROI due to long term development planHigh investments costs

Other rising developments in the vicinity to lead to higher foot traffic (MRT7, Eton Centris)Plans of building a school (British school)Will increase the lifestyle segment to lead to a more rapid growth for marketGrowth in aspirational market amongst FilipinosGlobal trending24 hour food concepts for BPO market

Inflation and change in buying powerPossible public demonstrations (slums)Other development plans by competitors (ie. Eton Centris)Intense competition within the vicinity among business players (esp. dining restaurants)

SM North EDSA

• Built in 1985

The Block Foreign and international brands

City Center Top local and international brands

The Annex Hip and youngCyberzone – 4th flr. (Single brand)

-5th flr. (Multibrand)

North Link Health tenants, Admin office, BIR

Interior Zone Home furniture

Skygarden Mostly food tenantsOpen until 2am

FILIPINO

Smokin Hot BBQGlobal Filipino Cuisine

• By The Bistro Group, headed by Chef Josh Boutwood

• Concept: Recently opened in May, 2013 to serve classic Filipino dishes infused with global serving styles and a more classy ambience

• Existing Branch– 3rd Level, Greenbelt 3, Greenbelt,

Paseo de Roxas cor. Legaspi St., Ayala CenterMakati, Metro Manila

• Product Mix: All Filipino• Price Points: P145-250• Contact Info

– (+63 2) 729-7431 to 32

THAI

SoiEat Thai Love Thai

• Owner• History/Concept• Existing Branches

– Lower Level, Food Court, Theatre Mall, Greenhill's Shopping CenterOrtigas Ave, Greenhill's

– G/F Robinson’s Place Manila, Adriatico St., Ermita, Manila

– Glorietta 2– Alabang Town Center

• Product Mix: Thai casual dining• Price Points: P200-499• Contact Info

– (+63 2) 695-3919 (Greenshills)– (02) 523-1189

JAPANESE

Yomenya GoemonJapanese Spaghetti House

• Owners: Richmond S. Yang, Luigi Vera and Robert Epes

• Concept: Pizza and pasta infused with indigenous Japanese flavors

• Existing Branch: 2nd Level, Greenbelt 2, Greenbelt, Paseode Roxas cor. Legaspi St., Ayala Center, Makati

• Product Mix: Japanese fusion• Price Points: P300-500• Contact Info

– (63 2) 757-4820– feedback.yomenyagoemonph@g

mail.com

CHINESE

Mu Noodle Bar

• Owner: Martin Yu• Concept: Chinese food with

global cooking styles and elements

• Existing Branches:– 197 Wilson St., San Juan, Metro

Manila, PH– 2/F Glorietta 2, Hotel Dr., Ayala

Center, Makati

• Product Mix: Chinese fusion cuisine

• Price Points: P200-499• Contact Info

– (63 917) 807-4057;(63 2) 451-2681 (San Juan)

– (02) 556-8739 (Glorietta)

INDIAN/MALAYSIAN/MIDDLE EASTERN

Kashmir• Owner: Indra Mirchandani• History: Manila's oldest Indian

fine dining restaurant• Existing Branches

– Festejo Bldg., 816 Arnaiz Ave. (Pasay Rd), Makati, Metro Manila, PH

– Merchants Center Bldg., Padre Faura St., Ermita, Manila, Metro Manila, PH

• Product Mix: Indian-Middle Eastern, Arabian and Malaysian food

• Price Points: P300-500• Contact Info

– (63 2) 844-4924 (Pasay Road)– (63 2) 524-6851; 63 2) 523-1521

(Ermita)

ITALIAN

Bigoli• Owner

• History/Concept

• Existing Branch

– 4th Level, TriNoma MallEDSA cor. North Ave.Quezon City, Metro Manila

• Product Mix

• Price Points:

• Contact Info:

MEXICAN

BajaMexican Cantina

• Owners: Art Mendoza, Cristine Hong

• History/Concept: Original Mexican baja

• Existing Branch– 3/F Greenbelt 3, Esperanza St.

cor. West Drive, Ayala Center, Makati

• Product Mix: Mexican comfort food

• Price Points: P150-300• Contact Info

– (02) 756-0127– (+63 2) 756-0127

Thank you!