The latest spotlight on Leading Real Estate Companies of the World’s International Project Marketing Program focuses on Cebu Exchange, an office development in Cebu City, Philippines developed by Arthaland.

Arthaland is an award-winning developer, whose honours include winning Best Office High Rise Development, Japan International Property Awards 2019; Best Commercial Landscape Development, Philippines Property Awards 2019; and Best Office Development (Cebu), Philippines Property Awards 2018.

With Phase 1 of the Cebu Exchange to be completed Q3 2020, and Phase 2 scheduled for completion in Q2 2022, LeadingRE sat down with Senior Sales Director for the Project, Michelle T. Tuason.

LeadingRE: Describe what is unique about the Cebu Exchange?

Michelle T. Tuason: Cebu Exchange is an office development strategically located in Cebu I.T. Park, Cebu City. Cebu is one of the most influential economic centers in Southern Philippines and is quickly emerging as one of the top IT-BPO destinations in the world. A premium, eco-friendly and sustainable office development, the Cebu Exchange is a well-balanced business ecosystem with smart office technologies, plush amenities, and a diverse retail mix where businesses and individuals can thrive in harmony.

Tell us about the philosophy behind the project.

The Cebu Exchange features a robust design inspired by the beautiful, crystalline structure of salt. From this focal design point, a dynamic workscape was then intuitively composed and carefully curated to become a landmark address attuned to the needs of businesses and individuals. 

Source: Cebu Exchange by Arthaland. 

ARTHALAND’s developments are recognized locally and globally for their superior design, high quality, and commitment to sustainability and innovation. Cebu Exchange will be a multi-certified development and is currently Pre-Certified Gold for USGBC’s Leadership in Energy and Environmental Design (LEED®) and registered for PhilGBC’s Building for Ecologically Responsive Design Excellence (BERDE), IFC World Bank’s Excellence in Design for Greater Efficiencies (EDGE®), and IWBI’s WELL Building Standard™.

What has the market response been to Cebu Exchange?

The market response towards Cebu Exchange has been positive and well-received by investors. As the biggest single-tower green office development in the Philippines, it is set to become a landmark for sustainable development in the country.

What lifestyle features does Cebu Exchange offer consumers?

Thoughtful and deliberate from design to execution, the Cebu Exchange will boast of a wonderful selection of amenities that will elevate employee experience and well-being, creating a true business ecosystem. From beautiful open-air landscaped decks that provide lush vertical sanctuaries for every building zone to dedicated floors for retail amenities, such as restaurants, coffee shops, gym, banks, drug store, laundry and dry cleaning services to a destination control elevator system to bring passengers efficiently and conveniently to their floors. Everything has been carefully considered.

What are the key selling points when it comes to the project's location?

Known for its powdery white sand beaches, delicious local fare and artisan crafts, Cebu, the Queen City of the South, has always been one of the most important and influential economic centers in the Philippines and is quickly emerging as one of the most prominent IT-BPM destinations in the world .With its idyllic work-leisure environment, it’s no surprise that Cebu has further developed into a regional hub and a preferred location of some of the most renowned global institutions, further contributing to the city’s booming economy. Cebu Exchange is located at the gateway of Cebu I.T. Park, which is the most prestigious masterplanned Central Business District in Cebu.

Source: Cebu Exchange by Arthaland.

What makes it compelling for real estate investors?

Cebu Exchange represents an outstanding opportunity for investments to grow. The cash yield from recurring rental income is projected to be at around 7% - 7.5%.  Cebu I.T. Park also has a low vacancy rate at 1.6% (as of 1H 2019). There is also a first mover advantage of further upside from capital appreciation.

Arthaland also recently launched its Consolidated Leasing Solutions (CLS) service that offers a unique, simple, and hassle-free way of investing in commercial real estate. This is achieved by professionally consolidating separate office unit purchases within a designated floor in an ARTHALAND office development and placing them under a singular leasing pool, which would then be offered to large companies.  With CLS, ARTHALAND will provide seamless, proactive, and convenient value-added services to facilitate lease earnings for savvy investors.

Upon purchase, buyers need not worry about anything else, as ARTHALAND will professionally manage all transactions. From finding and negotiating with potential tenants, documentation of the lease, collection of payments, distribution of rental proceeds, management of the property, and last but not the least, the handling of tenant concerns.

Through CLS, buyers of smaller cut office spaces are able to take advantage of the popularity and demand among large domestic corporations, multinationals, and BPOs of leasing large quadrant spaces or whole floors within premier green office buildings. This redounds to longer lease terms and higher and more secure lease rates/income as compared with the average rate of return for smaller office spaces that are often leased out to smaller firms.

Do you anticipate activity from international investors?

We are delighted with the response from the local market and interest from abroad is quite high, especially from buyers based in Japan, Taiwan and the USA.

Studies have shown majority of large corporations prefer to move to a green building.  Apart from the reduced operating costs, due to factors such as lower electricity costs and lower water consumption, green buildings promote a healthier and more productive working environment. This results in higher appreciation of property value and allows the landlord to command higher rental rates.

Are there any factors international buyers should be aware of when considering your economic environment?

The Philippines is recognized as a top growth performer in Asia. GDP in 2019 was at 5.9%, albeit slower than previous years. It has a booming economy and a fast-growing office sector. In light of this continuous growth, the government has increased infrastructure spending for major projects across the country which is seen to expand and accelerate development across various regions. Cebu City in Southern Philippines is the largest business center next to Metro Manila. It is home to several global in-house companies (eg Amazon, Convergys, Deloitte, Google, JP Morgan Chase etc) and its economy is being propelled by the escalating growth of multinational industries that are fueling demand for office stock. Cebu’s anticipated growth rate would ultimately be higher than that of the national GDP.

Click here for more information about the Cebu Exchange by Arthaland.

This is a sponsored article.

More from Leading Real Estate Companies of the World: 

LeadingRE IPMP Spotlight: Geocon and High Society

What it means to go green in the real estate industry

LeadingRE IPMP Introduces The Haven Bintan At Lagoi Bay