BDO Capital bullish on real estate sector

BDO Capital and Investment Corporation, the investment banking arm of BDO Unibank, Inc., is convinced the Philippine real estate market will remain robust this year, with the growth still being driven by business process outsourcing (BPO) companies.

BDO Capital president Eduardo V. Francisco said BPO companies will continue to generate high demand for commercial and retail space, as well as mixed use developments for the offices and peripheral needs of BPO employees.

"BPO will continue to drive growth. This sector will not only encompass office and commercial establishments, but will also include heightened demand for mid-market residential properties within and around central business districts," he said.

Francisco added that, "we all know that BPO employees, because of their work schedule, don't want to stray away from their place of work. As much as possible, they want to live within the vicinity of their workplace.”

Along with this, Francisco noted that they prefer that their other needs are addressed by convenience stores and shopping centers that are also near where they live and work.

As a testament of its continued optimism on the real estate indus- try, BDO Capital cited the recently inked 10-billion Fixed Rate Corporate Notes Facility with DMCI Project Developers, Inc. (DMCI Homes), where it acted as the lead arranger and sole bookrunner of the loan facility.

The note holders include BDO Leasing, BDO Private Bank, BDO Unibank, Bank of the Philippine Islands, China Banking Corporation, Land Bank of the Philippines, BPI Asset Management, ALFM Mutual Funds, Development Bank of the Philippines, and Security Bank Corporation.

DMCI Homes will pay the notes facility at prevailing interest rates, with the terms of payment broken down into two parts — the first 5 billion will be paid within five years, while the balance of 5 billion will be due within seven years.