Investing in Office Condominium

Presented byMelo PorciunculaKMC MAG Group

Who We Are

KMC MAG Group, Inc. is an award winning real estate

services firm and headquartered in Bonifacio Global City.

A real estate services provider, KMC has quickly become one

of the leaders in tenant representation.

Savills is a global real estate services provider listed on the

London Stock Exchange. They have an international network

of more than 500 offices and associates throughout the

Americas, the UK, continental Europe, Asia Pacific, Africa

and the Middle East.

KMC's sister companies provide seamless services.

Who We Are

Economic Overview

• Rapid Growth of Philippine Economy in 2013

• GDP at 7.8% in Q1• Strong macroeconomic fundamentals

- Continuously expanding BPO sector

- Growing private consumption- Government investments

- Growth in the tourism sector

Economic Overview

• Construction – the best performing industry for the 2Q 2013

• Growth achieved through PPP (Private Public Partnership)

• Outflow of foreign portfolio investments from $2.4 billion to $2.6 billion

• Stock index declined almost 22.0% from the all-time high of 7,403.65 basis points

There are 19 emerging business districts

with approximately 1,300 hectares of

developed land in Metro Manila.

MakatiBGC

Ortigas Center

• Century City

• McKinley Hill

• SM Mall of Asia Complex

• Metropolitan Business Park

• Newport City

• Aseana IT Business Park

• Asiaworld City

• Madrigal Business Park

• Filinvest Corporate City

• Nuvali Canlubang

Market Overview

• UP Techno Hub

• Eton Cyberpod Centris

• Eastwood City

• Araneta Cyberpark

• Greenhills Redevelopment

• Rockwell BPO Complex

• EDSA Central

• Robinsons Cyberpark

• Rockwell Center

Metro Manila

Composed of 15 Cities and One Municipality

Education hub of the Philippines.

— Has 27 universities and 18 colleges

3 Railway stations (LRT1, LRT2, & MRT)

3 Major Central Business Districts

— Bonifacio Global City, Taguig

— Makati City

— Ortigas Center, Pasig City

Market Overview

Makati City

Market Overview

Market OverviewOrtigas Center

Market OverviewBonifacio Global City

Market Overview

Market Overview

Market Overview

Market Overview

Market Overview

Why Invest in Office Condominiums?

Why not?

32,000

• There are expected 32,000 residential units for turn over within Metro Manila in 2013

• Makati to have the most number with nearly 10,000 units.

• Followed by Quezon City with 7,000 units.

Advantges

• Better ROR • Smaller market to compete in • Relatively longer lease terms • Less Maintenance• Corporate Clients • Consistent Yields • Regular escalation of rent

Challenges

• Taxes A & O• Administrative Requirements • Higher Cost to enter • Limited inventory • Limited preferred locations • Future proofing your inventory

Size matters

32.91%17.32%12.16%6.19%6.77%

12.27%12.38%

301-500sq.m501sq.m and above

Leads From J an - J une

Commercial40-100sq.m101-150sq.m151-200sq.m201-250sq.m251-300sq.m

TYPE 36 SQM 1BR 80 SQM 2 BR 303 SQM 3 BR 1500 SQM HOUSEPRICE 6,120,000 13,600,000 45,450,000 225,000,000 MO. RENT 30,000.00 65,000.00 190,000.00 450,000.00 ROR 17.00 17.44 19.93 41.67

RESIDENTIAL

TYPE 100 SQM 250 SQM 500 SQM 1000 SQMPRICE 12,500,000 31,250,000 61,000,000 119,000,000 MO. RENT 70,000 175,000 350,000 675,000 ROR 14.88 14.88 14.52 14.69

COMMERCIAL

ROR

ROR

Internal Rate of Return

Residential Commercial

Things to consider

• Location• Ownership structure • Capacity to Maintain the property • Cash Flow • Exit Plan

Developers withOffice Condominium Developments

Questions

Thank You