More mergers and acquisitions this year

CEBU, Philippines — Mergers and acquisitions (M&A) in the real estate sector is seen to intensify this year, as the Philippines is now becoming more attractive to foreign property developers.

Real estate market analyst and research firm Colliers International Philippines latest market forecast revealed that the short-term M&A will be driven by smaller local and regional players coverage, and by operators from the United States and the EMEA (Europe, Middle East, and Africa) countries entering the market through local partners.

“We believe that operators should cash in on the rising demand for flexible working space within malls, residential condominiums, hotels, and worker dormitories, “said Colliers International Philippines director for office services Maricris Sarino-Joson.

In Cebu, international developers have started to make partnerships with local developers, such as the Hong Kong Land, which partnered the Gaisano-led Taft Property Venture Development Corporation, in the creation of seaside township project Mandani Bay in Mandaue City.

Property development firms rival Ayala Land Inc. (ALI) and AboitizLand Inc., also started to collaborate through their joint project -- the integrated mixed-use development, Gatewalk Central in Mandaue City.

ALI also has existing joint project with Taft Property, the P35 billion leisure project on Mactan Island, called “Seagrove.”

AppleOne Property also partnered with Marriott International Inc., for the development of Sheraton Cebu Mactan Resort and Residences.

Other real estate trends that are expected to demand attention in the market included, the rising demand for premium designed flexible workspaces, introduction of breakthrough products in the industry and building owners will increasingly become participants in the sector as a way of reacting to shifting demand trends. (FREEMAN)