FILINVEST REIT Corp. (FILRT) is planning to add a total of 12,400 square meters (sq.m.) to its portfolio as it seeks new revenue sources, the company said on Monday.
In a regulatory filing, the real estate investment trust backed by listed property developer Filinvest Land, Inc., said its portfolio expansion includes new leases and coworking spaces.
FILRT said the addition covers up to 7,000 sq.m. in new leases from co-working facility operators and new business process outsourcing (BPO) tenants. It is also in talks with two major BPO firms that are looking to expand its current leases, it added.
As of the end of the first quarter, It placed its weighted average lease expiry at 7.1 years, which is expected to increase as new leases and renewals for the year begin.
The company said that a New York-based firm is planning to add two floors in one of its 16 buildings in Northgate Cyberzone in Alabang, while another BPO firm based in Europe is expected to add 2,300 sq.m. of office space. FILRT did not give out other details.
“We are glad to announce our fresh wins, as we strive to meet the renewed demand for high-quality office spaces from both new and existing tenants who recognize the value of our sustainability thrust,” FILRT President and Chief Executive Officer Maricel Brion-Lirio said.
“This will allow us to grow and diversify our portfolio of sustainable commercial properties that elevate the lives and well-being of our community,” Ms. Brion-Lirio added.
The company is accelerating it coworking or flexible office space solutions in partnership with “the largest provider in the Philippines to ably respond to the shifting customer demand brought about by hybrid work setups.”
Its parent firm, Filinvest Land, earlier announced a joint venture agreement with flexible office provider KMC to develop, manage, operate, and maintain flexible workplaces.
“This will not only provide an additional source of revenues but it also balances the office leasing portfolio,” the company said.
FILRT also aims to diversify its office portfolio by reducing the concentration on large BPO names and increasing the share of coworking and traditional tenants in the mix.
It said the company’s strategy is to expand in key central business districts in Metro Manila and toward major regional hubs in the Philippines with high and stable occupancy and deliver added value by driving more efficient and sustainable operations costs.
The company is also planning on expanding its portfolio to other asset classes such as retail, leisure, residential, and industrial properties.
FILRT gained 6.79% or 22 centavos to close at P3.46 per share on Monday. — Adrian H. Halili