Hong Kong’s ADM Capital, BPE Asia to invest $150m in Philippines office space project

Visual sourced from ADM Capital website.

Hong Kong-based fund managers ADM Capital and BPE Asia Real Estate have announced plans of investing up to $150 million to construct five office towers at the Clark Freeport in the Philippines.

The project stands as one of the largest investments by foreign investors in the Philippine real-estate sector, and the goal is to transform Clark Freeport into a new office and logistics hub.

In a joint statement, the two private equity firms pledged an initial $150 million investment to fund the construction of “Grade A” office buildings and surrounding infrastructure within the 177-hectare Global Gateway Logistics City (GGLC).

The latter is a master-planned office and logistics district strategically located next to the Clark International Airport, being developed by Kuwait-based firm KGL Investment Co (KGLI).

ADM Capital is a fund-management company, while BPE Asia is an affiliate of Baring Private Equity Asia, based in Hong Kong.

Also read: Japan-PH form JV to transform former US Air Base into major economic hub

To meet the demand of of multinational companies and business process outsourcing (BPO) companies in Central Luzon, ADM Capital and BPE Asia are leading a consortium of investors providing the cornerstone capital for the construction of office buildings with gross floor area of 142,000 square meters within the GGLC site.

The first of the five office towers to be constructed on the GGLC site will be right across The Medical City Clark Hospital, designed to provide 5.8 million square meters of office, logistics, industrial and supporting retail and hotel space.

The Medical City Clark was the first development made by KGLI on the 177-hectare GGLC, which was also co-founded by ADM Capital and BPE Asia.

Also read: Philippines to get $2b ODA from Japan for its ‘biggest railway project’

KGLI said, pre-leasing arrangements were already underway and construction of the first phase of office buildings is expected to start this November.

Large locators, such as Convergys, Texas Instruments, Samsung, and iQor, have already established a presence in Clark Freeport, while MNCs and BPOs are looking at expanding in the former US airbase.

BPE Asia managing director and head of real estate Mark Fogle explained the strong demand for office space in Metro Manila has resulted in high occupancy and rising rental costs, leading existing tenants and new entrants to look at secondary markets such as Cebu and Clark.

“The Clark area is well-positioned to thrive, given good accessibility and rents that are approximately half that of Metro Manila,” Fogle said. “With our own development and construction expertise in-house, BPE Asia looks forward to working closely with KGLI to deliver this high-quality project.”

Also read:

Japan, Philippines seal $11.1m grant deal

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.