ArthaLand sees steady demand for Cebu offices

CEBU, Philippines — Listed boutique developer ArthaLand Corp. sees a sustained demand in Cebu’s burgeoning office market moving forward, with the business process outsourcing (BPO) sector still considered as a major driver.

In a media briefing on the company’s Cebu Exchange project on Tuesday, executive vice president and treasurer Leo Po said the low vacancy rate in Cebu’s office sector indicates that demand is still there and will continue to expand.

He cited the robust office demand as among the key factors supporting the real estate growth in the southern economic powerhouse.

In the same interview, Chris Narciso, executive vice president for business development, also echoed that office space take-up in Cebu “will remain very robust.”

“Cebu has unique fundamentals that are attractive to BPO and KPO (knowledge process outsourcing) locators,” said Narciso.

Narciso also pointed out that infrastructure development will play a major role in sustaining Cebu’s property sector expansion.

“As long as Cebu continues to thrive economically and will have good infrastructure, this (growth in real estate) will continue to be very robust,” he said.

Po family-led ArthaLand is building the 38-story Cebu Exchange, an office building development on Salinas Drive, Cebu City, just across one of Cebu’s main business districts, the Cebu IT Park.

The project, expected to be completed by 2021, is designed to accommodate information technology and BPO locators which are expanding operations in Cebu.

Company officials said aside from expanding BPO firms, they also expect potential new BPO investors to locate here.

About 50 percent of the building has already been taken up.

In February last year, ArthaLand signed a $166-million deal with China Railway Dongfang Group and Knusford Bhd. for the Cebu office project.

The agreement involves engineering, procurement, and construction, as well as interior fit-out and interior furnishing services for Cebu Exchange.

The deal is the first venture for China Railway Dongfang Group and Malaysia’s Knusford in the Philippines.

Shares of ArthaLand were up to P0.57 apiece in early trading yesterday. — JMD (FREEMAN)