SM Investments to build second IT hub for P5.6B

BY MARICEL E. ESTAVILLO, BusinessWorld Reporter SM Investments Corp., the holding company of mall magnate Henry Sy, will spend at least P5.6 billion to develop its second information technology (IT) hub in Bay City in Pasay City, to be called SM iCITY 2. With total land area of 119,261 square meters, SM iCITY application’s for IT zone status has already approved by the Philippine Economic Zone Authority (PEZA) last March 28, allowing future locators to avail of tax cuts and incentives. In a telephone interview, Noel Sanchez, SM Investments assistant vice-president, said the company is targeting completion of SM iCITY 2 in the next five years. He said SM Investments is already preparing to construct the first office building, expected to be completed by June 2007. To be called the One E-comCenter, it will be a 10-storey building with total floor space of 94,000 square meters. Total leasable area is 67,900 square meters, with seven floors allotted for office space, two and a half floors for parking, and the ground floor for commercial uses. "In our plan, we expect SM iCITY 2 to host four buildings. One E-comCenter will be our first building within SM iCITY 2. The exact timetable for the construction for the second building will depend on the lease take up of the first building. It could be before June 2007 or immediately after," Mr. Sanchez said. Succeeding buildings could be higher than the first building. These will be called Two E-comCenter to Four E-comCenter. "The minimum investment for the first building that has ten floors is about P1.4 billion. The investments for the succeeding buildings could be higher since we target the three buildings to have more than ten floors," Mr. Sanchez said. The four buildings in SM iCITY 2 will primarily cater to the office requirements of business process outsourcing (BPO) firms, particularly call centers, and other service companies. The first IT hub of SM Investments in Bay City is the 6.9-hectare SM iCITY 1. This now hosts the 7,000 square meter and single-floor building of US-based call center firm TeleTech Customer Care Management Phils. "But we might use the remaining 5.2 hectares in SM iCITY 1 for other purposes (non-IT)," Mr. Sanchez said. Mr. Sanchez said the earlier announced Maitrade Expo and Convention center -- envisioned to become a "favored" conference and trade exhibit venue -- will not be constructed within the SM iCITY 2 but rather beside it. The convention center will have two floors, a mezzanine and basement parking with a total leasable area of 17,800 square meters featuring large exhibition areas and function rooms. The two IT hubs, SM iCITY 1 and 2, are located beside the 381,000-square meter SM Mall of Asia, designed to become the country’s largest shopping complex. Inside the Mall of Asia, computer maker Dell, Inc. is already operating a 13,470.5-square meter call center in the north parking building. The facility employs some 300 people who provide technical assistance to Dell clients in the United States for its desktop and notebook products. The 60-hectare SM Central Business Park, where all these developments are taking place, is being developed by SM Investments to be the "foremost and only central business district in the country by the bay, integrating business park facilities with entertainment, recreational, tourism, and residential land uses." Aside from office buildings, other developments planned for the SM Central Business Park include residential clusters, a coliseum for sporting events and entertainment shows and a ferry terminal. SM Investments is a conglomerate with interests in retail merchandising, shopping malls, banking and financial services, real estate development and tourism.