Araneta allots P2.5B for Gateway annex

Araneta Center, Inc. will spend P2.5 billion for the expansion of its Gateway Mall, which is the first phase of a long-term redevelopment plan. On the sidelines of the groundbreaking for the three-tower Manhattan Parkway Residence, ACI Chairman and Chief Executive Jorge L. Araneta said the flagship company of the Araneta family is constructing a 27-storey office tower, of which the first five floors will be a retail complex attached to the five-level Gateway Mall. "It is a big building. It will have some corporates and business process outsourcing (BPO) offices," he said. In its Web site, Gateway Mall said the building, called the Gateway Tower 2, will be a retail and office extension. It will stand on a 3,000 square meter property along the Araneta Center’s corporate spine. "Set to open in 2007, it will offer six levels of retail, 19 levels of offices, and three levels of basement parking. The project will be seamlessly integrated with Gateway Mall and enjoy Gateway’s unique features such as the connection to the two major rail transit systems." The Gateway Tower 2 will augment the need for more premium retail space in Gateway Mall while getting ready to respond to the increasing demand for premium grade office space," it added. Araneta Center is the owner, developer and manager of the mixed-use complex of the same name in the core of Quezon City comprising 35 hectares of shopping, dining and entertainment in the metropolis. Mr. Araneta said the group would renovate the New Frontier--which used to be a movie house-- and convert it to a live theater. "There is a need for a live theater venue in the Philippines. This will present popular shows such as Broadway shows, musical, concerts. It will be the first of its size at 2,500 seats for the Philippines," he said. Araneta Center will also put up a hotel. Mr. Araneta declined to divulge details but said it is going to be operated by international chain. "We have not yet signed a definitive agreement. With that, that will complete mixed used elements of the center since we have retail, office, residential, and entertainment," he said. He added Araneta Center is also developing an eight-hectare cyberpark with 10 low-rise buildings within the area. Its application for an information technology (IT) zone status has been approved by the Philippine Economic Zone Authority (PEZA). Araneta Center is host to Accenture Philippines, which occupies a four-level office facility beside Gateway Mall. It also has the APAC Customer Services, Inc., which has a 2,000-seat call center. "We are still negotiating with new locators. We are talking to two to three people right now," he said. Asked whether any of the family-owned companies intend to go public, Mr. Araneta said they don’t have plans right now although they are open to it. Describing itself as progressive and diversified group, the Araneta Group is anchored on food, leisure, and property development. Among its companies are Progressive Development Corp., Philippine Pizza, Inc., and United Promotion, Inc. and ACI. - Ruby Anne M. Rubio/BusinessWorld