Park Triangle Corporate Plaza Proposed Commercial Office Investment

1. PROPOSED OFFICE:
A UNIQUE
INVESTMENT
OPPORUNTINITY

2. WHY INVEST IN
COMMERCIAL
PROPERTY?

3. • NO NEED FOR INTERIOR DECORATING
– Potential tenants usually pay to fit-out
(interior decorate) their units
• LONGER LEASES
– Average lease rate in BGC is 3-5 years
– Spend less time stressed when your
residential tenants 1 year term is almost
over
• PLETHORA OF LEASING AGENTS
– You will be able to have multi-billion dollar
companies like Jones Lang LaSalle, CBRE,
Colliers and KMCMag lease your unit
– No need to rely on a single broker to help
you lease
• PRIME FACTORS
– Apart from other developments by being
located within the city center, this building is
integrated into a master planned community
Why invest in Commercial Real
Estate:

4. • Capital appreciation
– Colliers predicts BGC land values to
increase by 9.8% in 2014*
– Combination a world-class office building,
an emergent business district, constricted
supply and Ayala brand name should
contribute to gains in capital appreciation
• Constricted supply
– JLL expects a market shortage of offices
by 2016 with current vacancy rates
already at 0.96% for BGC as of Q1
2014
– Short supply = higher demand = higher
rent/re-sale value
– Headline rate for Ayala’s BGC offices is
875 per square meter with a 10% rental
escalation rate**
* Colliers Q4-2013 Market Overview
**APMC Rental and Escalation Rates as of May 2014
Why invest in
Commercial Real
Estate:

5. Return On Investment = Yield on Investment
Cost of Investment
= 875/sq.m. X 12 months/yr.
165,000/sq.m. (gross of VAT)
= 6.3 % per annum vs. T-bills rate of 0.31%
TD rate of 2.48%
SD rate of 5.50%
* Based on current rental rates of High Street 2nd floor offices
NOTE:
Prevailing lease rate is P800/sqm on GFA, converted to P940/sqm on GLA
T-bills : Treasury bills
TD : Time Deposit
SD : Savings Deposit (Peso)
*figures are based on BSP per annum rates as of April 15-19, 2013
Return on Investment

6. Fort Bonifacio Rental Projections:
• Based on APMC’s current lease rate of 875
psqm at a rent escalation rate of 10% per
annum
Rent Escalation
(P.A.)
Projected
Rental Rates
(2018)
Return on
Investment
Low End (3%) 985 psqm 7.1%
Mid End (5%) 1,064 psqm 7.7%
Current (10%) 1,281 psqm 9.3%

7. Stable Rental Potential
• Since offices have a minimum lease length of 3-5
years, your property gets rented and stays rented

8. • Proposed office will be located on the corner
of 11th street and 32nd avenue
• Located next to an Ayala Mall
• One of the highest visibility locations within
BGC

9. Typical Reservation Details and
Payment Schemes
 How much is the reservation fee?
− Php 100,000 per unit and Php 50,000 per parking to BGSouth
Properties Inc.,
 What are the payment terms and corresponding discounts?
CASH TERMS
− Cash 30 with 8% discount
− Cash 60 with 7% discount
− Cash 90 with 5% discount
DEFERRED TERMS
− 50% DP, 50% over 48 months with 2% discount
− 30% DP, 70% over 48 months
PROMO TERM
− 20% DP, 80% over 48 months
Standard bulk discounts will apply.