Savya Financial Center (by Arthaland)

Dear valued clients,

We would like to offer to you Arthaland’s newest office building in Arca South (old FTI Complex in Bicutan)–Savya Financial Center (SFC).

Here’s why I think SFC is currently the best pre-selling office investment in the market today:

Optimism for Arca South (Old FTI Complex in Bicutan, Paranaque)

It’s like BGC but with better infrastructure to support growth: South ITX transport hub (2020), Direct Skyway Exit and Entrance ramps (2020), and Sub-way (2024). It’s only 5 km away from the airport and BGC, and only 7 km away from Makati.

Great Value

SFC is priced at Php240,000/sqm (as of January 25, 2019), the lowest in the market (even lower than Alveo’s Tryne Enterprise Plaza). It’s like getting Ayala Land Premier quality at Avida prices.

(Price/sqm will likely be increased to Php280,000 to match prices of Alveo’s Tryne Enterprise Plaza (TEP) after the official launch in January 31, 2019.)

Better Investment Return

Net Present Value analysis shows that SFC is the better investment due to lower price/sqm and light payment terms. I expect SFC prices to grow 6%-8% annually in the next five years, driven by office space demand particularly BPO companies (e.g. online gaming). Unlike SFC, Alveo office buildings don’t allow 24/7 operations. Moreover, rental rates in Arca South would likely match the rental rates in Makati once the infrastructure and residential projects are completed in 4Q2024.

Value Today / sqm NPV/sqm*
Savya, Arca South Php 240,000 91,722
Tryne, Arca South 280,000 72,306
HSS, BGC 300,000 14,941
AFC, Makati 308,000 41,934

*JASP Estimates

 

My forecasts show that SFC will have a better rental yield than its peers.

Location Price
/Sqm
Rental Rate
/sqm*
Cap Rate Turnover Payment
Scheme
Savya (Arthaland) Arca South 240,000 800 4.00% 2021 10-30-60
Tryne (Alveo) Arca South 280,000 800 3.43% 2023 10-40-50
High Street South (Alveo) BGC 300,000 900 3.60% 2018 100
Alveo Fin. Center Makati CBD 308,000 1000 3.90% 2021 10-40-50

*JASP Estimates

 

Projected Price / Square Meter* for SFC

CAGR Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
5% 240,000 252,000 264,600 277,830 291,722 306,308
6% 240,000 254,400 269,664 285,844 302,994 321,174
7% 240,000 256,800 274,776 294,010 314,591 336,612
8% 240,000 259,200 279,936 302,331 326,517 352,639
9% 240,000 261,600 285,144 310,807 338,780 369,270

*JASP Estimates

If you are interested to invest in this project, send me a message. As of this writing, only 58 out of the 120 units of the North Tower remain available. The South Tower is sold out.

Thank you.

Juan Alfredo S. Patag, REB

REB Lic. # 0023114; ID#0023114 until 10/20/2022; PTR#7335646 until 12/31/2019

T: 505.3584 / M: +63 917 520.5826

 

President, RE/MAX Capital

7th Floor, 8 Rockwell, Hidalgo Drive, Rockwell Center, Makati City

http://www.remaxcapital.ph

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