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.
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|
My forecasts show that SFC will have a better rental yield than its peers.
|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|
Projected Price / Square Meter* for SFC
|CAGR||Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
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.
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