Investing in Office Condominium
Presented by
Melo Porciuncula
KMC MAG Group
Who We Are
KMC MAG Group, Inc. is an award winning real estate services firm and
headquartered in Bonifacio Global City. A...
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
- C...
Economic Overview
• Construction – the best performing industry for
the 2Q 2013
• Growth achieved through PPP (Private Pub...
There are 19 emerging business districts with
approximately 1,300 hectares of developed land
in Metro Manila.
Makati
BGC
O...
Metro Manila
 Composed of 15 Cities and One Municipality
 Education hub of the Philippines.
— Has 27 universities and 18...
Makati City
Market Overview
Market Overview
Ortigas Center
Market Overview
Bonifacio 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 w...
Advantges
• Better ROR
• Smaller market to compete in
• Relatively longer lease terms
• Less Maintenance
• Corporate Clien...
Challenges
• Taxes A & O
• Administrative Requirements
• Higher Cost to enter
• Limited inventory
• Limited preferred loca...
Size matters
32.91%
17.32%
12.16%
6.19%
6.77%
12.27%
12.38%
301-500sq.m
501sq.m and above
Leads From Jan - June
Commercial
40-100sq.m
1...
TYPE 36 SQM1BR 80 SQM2 BR 303 SQM3 BR 1500 SQMHOUSE
PRICE 6,120,000 13,600,000 45,450,000 225,000,000
MO. RENT 30,000.00 6...
ROR
ROR
Internal Rate of Return
Residential Commercial
Things to consider
• Location
• Ownership structure
• Capacity to Maintain the property
• Cash Flow
• Exit Plan
Developers with
Office Condominium Developments
Questions
Thank You
KMC MAG Group in Money Summit & Wealth Expo 2013: Investing in Office Condos
Upcoming SlideShare
Loading in …5
×

KMC MAG Group in Money Summit & Wealth Expo 2013: Investing in Office Condos

309 views

Published on

KMC MAG Group joined the Money Summit & Wealth Expo 2013 held last July 12–13, 2013 in SMX Convention Center, Pasay City. Melo Porciuncula, KMC's Head of Capital Markets and Investments team led the discussion on the potential benefits and risks of investing in office condos.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
309
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

KMC MAG Group in Money Summit & Wealth Expo 2013: Investing in Office Condos

  1. 1. Investing in Office Condominium Presented by Melo Porciuncula KMC MAG Group
  2. 2. 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.
  3. 3. KMC's sister companies provide seamless services. Who We Are
  4. 4. 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
  5. 5. 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
  6. 6. There are 19 emerging business districts with approximately 1,300 hectares of developed land in Metro Manila. Makati BGC 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
  7. 7. 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
  8. 8. Makati City Market Overview
  9. 9. Market Overview Ortigas Center
  10. 10. Market Overview Bonifacio Global City
  11. 11. Market Overview
  12. 12. Market Overview
  13. 13. Market Overview
  14. 14. Market Overview
  15. 15. Market Overview
  16. 16. Why Invest in Office Condominiums?
  17. 17. Why not?
  18. 18. 32,000
  19. 19. • 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.
  20. 20. Advantges • Better ROR • Smaller market to compete in • Relatively longer lease terms • Less Maintenance • Corporate Clients • Consistent Yields • Regular escalation of rent
  21. 21. Challenges • Taxes A & O • Administrative Requirements • Higher Cost to enter • Limited inventory • Limited preferred locations • Future proofing your inventory
  22. 22. Size matters
  23. 23. 32.91% 17.32% 12.16% 6.19% 6.77% 12.27% 12.38% 301-500sq.m 501sq.m and above Leads From Jan - June Commercial 40-100sq.m 101-150sq.m 151-200sq.m 201-250sq.m 251-300sq.m
  24. 24. TYPE 36 SQM1BR 80 SQM2 BR 303 SQM3 BR 1500 SQMHOUSE PRICE 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 SQM PRICE 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
  25. 25. ROR ROR Internal Rate of Return Residential Commercial
  26. 26. Things to consider • Location • Ownership structure • Capacity to Maintain the property • Cash Flow • Exit Plan
  27. 27. Developers with Office Condominium Developments
  28. 28. Questions
  29. 29. Thank You

×