KMC MAG Group joined the Money Summit & Wealth Expo 2013 held last July 12–13, 2013 in SMX Convention Center, Pasay City. Melo Porciuncula, KMC's Head of Capital Markets and Investments team led the discussion on the potential benefits and risks of investing in office condos.

1. Investing in Office Condominium
Presented by
Melo Porciuncula
KMC MAG Group

2. 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.

3. KMC's sister companies provide seamless services.
Who We Are

4. 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

5. 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

6. There are 19 emerging business districts with
approximately 1,300 hectares of developed land
in Metro Manila.
Makati
BGC
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

7. 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

8. Makati City
Market Overview

9. Market Overview
Ortigas Center

10. Market Overview
Bonifacio Global City

11. Market Overview

12. Market Overview

13. Market Overview

14. Market Overview

15. Market Overview

16. Why Invest in Office Condominiums?

17. Why not?

18. 32,000

19. • 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.

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

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

22. Size matters

23. 32.91%
17.32%
12.16%
6.19%
6.77%
12.27%
12.38%
301-500sq.m
501sq.m and above
Leads From Jan - June
Commercial
40-100sq.m
101-150sq.m
151-200sq.m
201-250sq.m
251-300sq.m

24. TYPE 36 SQM1BR 80 SQM2 BR 303 SQM3 BR 1500 SQMHOUSE
PRICE 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 SQM
PRICE 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

25. ROR
ROR
Internal Rate of Return
Residential Commercial

26. Things to consider
• Location
• Ownership structure
• Capacity to Maintain the property
• Cash Flow
• Exit Plan

28. Developers with
Office Condominium Developments

29. Questions

30. Thank You