PRIMEX Corp. started the construction of its P3.6-billion office tower in San Juan City yesterday, banking on its prime location to drive demand for tenants.
In a statement issued Wednesday, the listed property developer said it has broken ground for the Primex Tower. The 50-storey office project will stand on a 1,944-square meter lot at the corner of EDSA, Connecticut Street, and Florida Street at the Greenhills commercial district.
Primex Tower is set to offer around 41,000 square meters (sq.m.) of leasable spaces with a cut of 200 to 300 sq.m each. Offices will be spread out across 37 floors, while 12 floors will be dedicated for above-ground and basement parking.
The project — envisioned to be the tallest one in the city — is expected to be completed in the next four to five years. Primex’s subsidiary Primex Realty Corp. is in charge of its development.
“With the project, the company is looking to take advantage of increasing demand in the office and hotel sectors,” Primex Chairman and President Ernesto O. Ang was quoted as saying in a statement.
Mr. Ang said a study made by real estate consultancy firm Colliers International Philippines had projected an average 10% per annum increase in rental rates across submarkets. This is amid rising vacancy rates in Metro Manila.
“The growth in the sector will be quietly led by knowledge process outsourcers,” Mr. Ang said.
The company said the Primex Tower will be able to attract tenants as the demand for office spaces shifts to new and higher quality buildings, instead of old structures.
The tower will also feature designs in line with Leadership in Energy and Environmental Design (LEED) standards. This includes surrounding the building with 90% double-gazed glass with vacuum in-between that reduces heat and noise penetration. In turn, the reduced heat gain will enhance the efficiency of the air-conditioning system in the building.
LEED standards are measures imposed by the United States Green Building Council to ensure that a development is healthy, highly efficient, and cost-saving.
The beginning of the Primex Tower’s construction followed the completion of the company’s 31-storey condominium project in Salcedo Village, Makati called The Stratosphere.
Moving forward, the company is looking for more local and foreign partners for the joint development of its existing land bank.
“These locations — in Malabon, Mandaluyong, Quezon City, and San Juan in Metro Manila and surrounding areas like Tagaytay — are showing equally exciting growth potential,” Primex Executive Vice-President Karlvin L. Ang said in a statement.
Primex reported a net loss attributable to the parent of P1.36 million in the first quarter of 2018, versus an attributable profit of P25.74 million in the same period a year ago. This followed a 92% drop in gross revenues to P7.44 billion for the January to March period.
Shares in Primex jumped 6.51% or 22 centavos to close at P3.60 apiece on Wednesday. — Arra B. Francia