BPO sector remains a bright spot for PH – CBRE

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ABS CBN.com

17 January 2013

http://www.abs-cbnnews.com/business/01/17/13/bpo-sector-remains-bright-spot-ph-cbre

Mornings @ ANC January 2013 Interview

https://www.youtube.com/watch?feature=player_embedded&v=p_epodsnlmU

Real estate advisory firm CBRE says the Philippines has strong fundamentals to sustain its growth in the next five years.

CBRE chairman Rick Santos says the Philippines will remain a lifeboat for the European and US economies especially when it comes to outsourcing products and services.

In an interview on Mornings@ANC, Santos said he expects the business process outsourcing sector to remain a bright spot and to drive demand for real estate.

“This is a great time for the Philippines. This is the best market I’ve ever seen in last 20 years and it’s driven a lot by demand from office sector, call centers, BPOs, shared services companies that outsource their work here. We see that sector being a bright spot for 2013,” he said.

“From a macro perspective, we’re seeing the Philippines being second to China in terms of GDP growth. Last year, the Philippines was one of the best performing markets in Asia… Also from an investment standpoint, we’re just one notch away from investment grade. So we’re seeing a lot more institutional investors coming in, looking at the Philippines from a real estate point of view, equity investment point of view.”

Santos says a wide range of financing schemes is also making the country a nation of owners when it comes to real estate.

He adds with the advent of gaming in the country the hotel and leisure sector will continue to pick up bringing in more investors and generate more jobs.

“The hotel and leisure sector is picking up and that’s behind advent of gaming, with all these casinos coming in, which will bring in more investors. We see in 5 year’s time, we see the Philippines challenging places like Macau, Las Vegas in the gaming sector,” he said.

However, Santos cites infrastructure as crucial to sustaining the economic growth.

“I think the challenge will be infrastructure, just making sure that infrastructure keeps up with demand in terms of road, rail and airports, etc. I think as long as we keep investing in infrastructure to make sure the phenomenal success of the Philippines has had in property side, I think that growth is sustainable,” he said.

Orion Support Incorporated (OSI)

Dear Rick,

Following up from my initial request to you for support in finding a new office location for our company, Orion Support Incorporated.   Well, we moved in to the LTA Building on Perea Street, fifty meters or so from Paseo de Roxas this weekend, only a 4 minute walk to AmCham and under excellent terms.

While I think you assigned both Morgan Mcgilvray and Sherdil Rana to support our original request; as you know, Morgan was very tied up with his wife giving birth during the period we identified this location and negotiated with the landlord, Mr. Mike Arroyo. Yes, the former First Gentleman. But in my short interaction with Morgan, I can see that he is a solid, young professional.

With regards to Sherdil, I want to tell you that with 35+ years of interviewing hundreds and hundreds of individuals, I was impressed with his professionalism, focused support and “can-do” attitude  from the point of identifying our potential office space, and through the negotiation stages prior to the signing of our 6 year contract.  I was impressed with his considered opinions, insightfulness with regards to Philippine business culture and his sage advice related to our strategy in the negotiation process.  Sherdil was able to negotiate a rental rate per square meter about 150 – 200 pesos less than the going rate in this area, and with only a 7% increase after 24 months. Add to that, he secured for us three parking slots at no additional cost, two months security deposit versus the standard three, and two months advance rent to be applied to the front end of our contract versus the back end as is the case in most rental contracts. And, he got the landlord to repaint the entire office with three coats of mildew resistant paint at their expense.   But best of all, we were given a 6 year lease, with only having to give two months notice and forfeit only our two month security deposit to move out anytime with no additional penalty!

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