Property companies shifting to industrial leasing

MANILA, Philippines — Property conglomerates are turning to industrial leasing as another growth area amid the rapid demand from the fast-growing logistics sector in the country, industry players said.

The logistics industry, a lucrative but less regulated sector, is driving the growth of the warehousing business, they said.

Ayala Land Inc., the property arm of Ayala Corp. for instance, has refocused the business of its newly acquired Prime Orion Properties Inc. (POPI) to include real estate logistics.

“Logistics is growing so there is demand for modern warehousing facilities,” said POPI president Maria Rowena Tomeldan.

POPI is set to launch two more industrial estates in the first half of next year – one in Cagayan de Oro in Mindanao and another in Central Luzon.

This is on top of the two existing industrial estates which are now under POPI, the 460-hectare Laguna Technopark in Sta. Rosa, Laguna and the 135-hectare Cavite Technopark in Naic.

Tomeldan said with the growth of logistics, there is growing demand for warehouses and other industrial hubs that could service a wide range of businesses – from imported cars to food.

ALI has raised its stake in POPI to 63.9 percent from 54.91 percent previously and is open to acquiring an even bigger stake.

Aside from ALI, the Villar Group, which is behind Vista Land & Lifescapes Inc. is also seriously considering industrial leasing.

Manuel Paolo Villar, president and CEO of Vista Land, said the group may also get into industrial leasing given the bright prospects of the industry.

“We will try in a small way to get into industrial leasing,” he said recently.

DoubleDragon, co-chaired by Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong, has also added industrial leasing in its portfolio.

It will create 100,000 square meters of leasable space under a new business segment, Central Hub Industrial Centers.

The new subsidiary will be the industrial leasing arm, targeting branded multi-use warehouse chains such as cold storage, logistics, and commissaries.

This provides DoubleDragon another leg in its property portfolio, which already includes commercial retail leasing, office leasing, industrial leasing and hospitality.

Anchor Land, another property company, is also expanding its presence in the industrial leasing sector by adding another facility to its portfolio of warehouses.

The company would soon commence the construction of Juan Luna Logistics, a warehouse facility in Divisoria, Manila as part of its continuing efforts to support small and medium enterprises (SMEs).

SMEs continuously seek affordable yet highly accessible storage areas, said Anchor Land CEO Steve Li.

Juan Luna Logistics will rise in front of 168 Shopping Mall, one of the most popular shopping centers in Divisoria. This will enable clients to transport their goods conveniently into their retail stores.

The facility will offer generous storage spaces with a density of only eight units per floor.

Juan Luna Logistics is the third logistics facility of Anchor Land, following the success of One Soler Logistics in Binondo and One Logistics in Baclaran.