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Cebu developer plans third IT building
Thursday, May 07, 2009

CEBU CITY- With demand for office space buoyed by rising interest from European companies, a property developer here is eyeing the launch of an information technology (IT) building- its third- next year.

"[The demand for office space] is picking up. We have many inquiries from European countries, mostly business process outsourcing (BPO) and corporate firms," said Charles Vincent G. Ong, vice-president for operations of TG Universal Business Ventures Corp.

"We're very positive and confident now because we used to be a very US-driven market but now Europe is looking at the Philippines."

He said construction of a third IT building would stat next year. He, however, refused to provide more details other than TG Universal is now actively looking for a location.

The company's newest and second IT building is the TGU Tower, which cost between P700 million to P1 billion, to construct. It is composed of 15 stories and is located in the Asiatown IT Park. The first was the Synergis IT Center in Barangay Kasambagan that has been mostly leased out to Sykes Asia Inc.

In the first quarter, the company said it wanted to put off expansion plans due to the global recession and the slow take-up rate of TGU Tower.

In mid-April, however, the company received many inquiries from European companies for office space in TGU Tower, Mr. Ong said.

Multinational company Bombardier Transport is TG Universal's newest locator, which chose TGU Tower among 10 other buildings in the country for its Global Financial Shared Services Center.

Sixteen other global companies have so far located in TGU Tower including Pru Life UK, Taylor Science and Technology Philippines, Playtech Bingames Limited, and NowDocs International, Inc., to name a few.

Now with the TGU Tower 70% occupied, Mr. Ong said it's about time to develop another "high-end and world-class IT building with complete facilities."

"The crisis may have created a slowdown but it has also opened up new markets. More companies would want to cut cost and it's very good to know these new markets are looking at the Philippines as a potential location. Since we expect an increase in the demand for office spaces, we have to be ready," he said.

At the same time, local officials here continue to aggressively promote Cebu as the best BPO destination in the country in terms of the cost of doing business, local government support, and human resources pool.

Investment advisory firm Tholons named Cebu as a top emerging global outsourcing destination last year. Cebu now aims to be known as the "Innovation Island" and corners a fifth of the $12.199-billion national revenue target of he BPO sector by 2010.

Source: Business World