Skip to main content Skip to footer

Market Intelligence | Philippines June 23, 2022

MREIT, real estate investment trust, Megaworld, Asian Development Bank, South Commuter Railway

This week, Colliers Research provides insights on Megaworld’s REIT arm announcing its plan to infuse another PHP15 billion worth of assets into the firm, and the Asian Development Bank approving up to USD4.3 billion (PHP82.7 million) in loans to finance the construction of the 55-kilometer South Commuter Railway, a transport infrastructure project that will connect Manila with Calamba, Laguna.

 

MREIT expects P15-b worth of asset infusion

SUMMARY

MREIT Inc., the real estate investment trust company of Megaworld Corp., said it is on track with its commitment to acquire PHP20 billion (USD384.6 million) worth of commercial assets in 2022. MREIT announced it is infusing another PHP15 billion (USD288.5 billion) worth of assets into the firm. The company plans to diversify its portfolio by acquiring properties in townships outside of Metro Manila where MREIT does not have a presence yet. As of the end of 2021, the firm’s portfolio covered 14 prime Grade A office towers with 280,000 square meters (3.0 million square feet) of gross leasable area.

RESEARCH REVIEW

The Philippine government enacted the Real Estate Investment Trust (REIT) Law to democratize wealth and funnel more foreign investment into the property sector. In our view, the implementation of REITs in the country should allow developers to further diversify their projects. Since its launch, Colliers has observed major developers expanding their REIT portfolio with the acquisition of more income-generating assets. Colliers recommends that developers use REITs to access a cheaper source of capital to fund new projects and redevelop their properties. Among the assets that developers could consider refurbishing or developing are office towers in anticipation of the potential rebound in the sector beyond 2022. From 2022 to 2026, Colliers projects an annual average of 480,600 square meters (5.2 million square feet) of net take-up in Metro Manila. Colliers believes that office space demand will likely be sustained by traditional and outsourcing firms’ expansion plans and return-to-office (RTO) mandates. Developers may also opt to use their REIT proceeds to renovate and reposition other assets, such as malls, hotels, and warehouses, and for the development of integrated communities within and outside Metro Manila.

Read More

shutterstock_130169438

ADB approves $4.3-billion loans for South Commuter rail project

SUMMARY

The Asian Development Bank (ADB) has approved up to USD4.3 billion (PHP82.7 million) in loans to finance the construction of the South Commuter Railway project. The 55-kilometer (34 miles) railway is part of the North–South Commuter Railway (NSCR) project and will have 18 stations connecting Metro Manila and Calamba, Laguna. The railway is expected to ease public transport and road congestion and reduce the 2.5-hour travel time between Manila and Calamba by half. The NSCR is expected to generate 35,500 jobs during its construction and 3,200 more jobs once it becomes operational.

RESEARCH REVIEW

The completion of major infrastructure projects such as the North–South Commuter Railway (NSCR) and NLEX–SLEX connector should improve the connectivity of Northern and Southern Luzon to Metro Manila as well as support the government’s decentralization program. This should also be supported by the completion of New Manila International Airport in Bulacan and the expansion of Clark International Airport. In our opinion, developers should be more proactive in scouting for more developable land outside the capital region including the Cavite–Laguna–Batangas (CALABA) corridor, Pampanga, and Bulacan for the development of more integrated communities. Colliers has observed aggressive launches of townships in these provinces over the previous years which include Rockwell Land’s Nepo Center in Angeles, Pampanga; Megaworld’s Northwin Global City in Marilao, Bulacan, and Maple Grove in General Trias, Cavite; Ayala Land’s Broadfield Estate in Biñan, Laguna; and Pueblo de Oro’s Townscapes in Malvar, Batangas.

Read More

 

View our previous market intelligence reports


Related Experts

Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

View expert

Martin Aguila

Senior Analyst

Research

Manila

Martin Aguila graduated in February 2019 from the De La Salle University with a degree in AB Economics. He joined Colliers Philippines in the same month and works as an analyst under the Research department. He has presented in several property market briefings with developers and investors and has assisted in the preparation of reports related to property such as Market Intelligence, GDP Flash, Quarterly Market Updates and Radar Reports. He also helps the team maintain and develop databases.

View expert

Brent Respicio

Research Analyst

Research

Manila

Brent Respicio graduated in 2017 from University of the Philippines Los Banos with the degree BS Economics. Brent is a Research Analyst for the Research Department. Prior joining Colliers, Brent already worked for a real estate firm as a researcher as well. He is involved in conducting quarterly reports on residential and industrial sector and helps in maintaining databases for the use of research and other departments. 

View expert