This document discusses several large-scale private urban development projects in Metro Manila and surrounding regions. It notes that these projects are integrated developments containing residential, commercial, office, and industrial space. Many were planned by major international architectural and planning firms to high standards. Developers have increasingly taken on roles in banking, construction, and transportation infrastructure to facilitate these massive real estate ventures and connect them to the broader urban region. The largest developer, Ayala Land, has pioneered several major projects in Metro Manila and its expansion into surrounding provinces.
This document discusses several large-scale private urban development projects in Metro Manila and surrounding regions. It notes that these projects are integrated developments containing residential, commercial, office, and industrial space. Many were planned by major international architectural and planning firms to high standards. Developers have increasingly taken on roles in banking, construction, and transportation infrastructure to facilitate these massive real estate ventures and connect them to the broader urban region. The largest developer, Ayala Land, has pioneered several major projects in Metro Manila and its expansion into surrounding provinces.
This document discusses several large-scale private urban development projects in Metro Manila and surrounding regions. It notes that these projects are integrated developments containing residential, commercial, office, and industrial space. Many were planned by major international architectural and planning firms to high standards. Developers have increasingly taken on roles in banking, construction, and transportation infrastructure to facilitate these massive real estate ventures and connect them to the broader urban region. The largest developer, Ayala Land, has pioneered several major projects in Metro Manila and its expansion into surrounding provinces.
in urban development in the Metro Manila city-region.
The fact that this project is an unsolicited bid is
indicative of the greatly expanded role of the private sector in all phases of the planning process. This consortium proposes to develop an entire urban system, including a large-scale real estate venture and supporting mass transit and other infrastructure linking it to the region. Indeed, the proposed new city development will be equivalent in size to some smaller Metro Manila municipalities. Private sector Urban megaprojects and the privatization of planning in Southeast Asia 389 390 G Shatkin N:/psfiles/epa4002w/ Table 1. Major real estate developments in Metro Manila (sources: Ayala Land Inc., 2005; Bases Conversion Development Authority, 2005; Filinvest Corporate City, 2005; Laguna Technopark Inc., 2005; Ortigas Center, 2005; Philippine National Railways Authority, 2005; Wikipedia, 2005a; 2005b; 2005c). Project (year Developer(s) Planners Size and Description development composition began) Bonifacio Global City (1996) Ayala Land Inc. Hellmuth, Obatat & Kassabaum (HOK) 150 ha of former military land Public ± private partnership to develop residential, commercial, office, and industrial space. Development planned to eventually accommodate 250 000 residents and 500 000 daytime workers and shoppers. Rockwell Center (1995) Lopez Group Skidmore Owings Merrill 15.5 ha on a former thermal power plant site Includes 5 high-rise residential towers, office towers, a mall, and a branch campus of the prestigious Ateneo de Manila University. Eastwood City Megaworld Corporation Klages Carter Vail & Partners (USA) 15 ha high-density development Includes residential towers and several high-rise office buildings. It has attracted national headquarters of IBM and Citibank. Ayala Alabang (1976) Ayala Land, Inc. Various 659 ha Development of over 5000 residential lots. Includes a number of educational institutions, a community center, equestrian club, and a golf and country club. Ortigas Center Ortigas Group Various About 200 ha Major commercial center that contains the headquarters of the Asian Development Bank and several major corporate headquarters. Ayala Westgrove Heights Ayala Land Inc. Helber Hastert & Fee, Planner, Inc (Hawaii)ÐMaster Plan Consultant 400 ha Upscale residential development that includes commercial retail centers. Laguna Technopark (1989) Ayala Land Inc. 387 ha The largest export-processing zone in the country, hosting manufacturing activities of over 100 export-oriented companies, including Honda, Panasonic, and Hitachi. Filinvest Corporate City Filinvest Skidmore Owings Merrill, the SWA Group 244 ha New business district, Filinvest's `gateway' development to the CALABARZON region. Includes a high-rise residential complex, mall, Cyberzone, and retail, dining, and entertainment center. influence has predominated at all stages of the planning process, from plan formulation to implementation to many aspects of postproject maintenance. Government agencies have played a rather modest role in facilitating the achievement of the consortium's objectives. The entire endeavor is premised on the belief that, given the poor performance of government in the areas of transportation and land development in the past, and the restrictions on its power and capacity at present, there is a close alignment between public and corporate interests. Table 1 details some of the most notable urban development projects undertaken in Metro Manila in recent years, and figure 1 shows their locations along with recent transportation infrastructure projects. The real estate projects contain certain common features. First, they are integrated, containing residential, commercial, office, and industrial space in what is, at least theoretically, a self-contained development. Each was planned according to what its developers viewed as `international' standards and best practices; indeed, many were planned by major multinational architectural and planning firms. Each also employs a system of development controls (such as floor- area ratios, minimum setbacks, and building codes) and traffic management to prevent the `informalization' of the built environment and to maintain a distinctive planned character. The intent is to differentiate these spaces from those of the `public' city in their aesthetic appeal, in the types of clientele that they attract, in their levels of security, and in the quality of the connecting transportation infrastructure. While these projects do borrow design and planning elements from cities in the United States, Europe, and elsewhere in Asia, they often do so in an eclectic manner that does not adhere to any one specific model. This is demonstrated in the three photos (figure 2) of adjacent portions of Eastwood City that evoke alternately the forms of Singaporean high-rise housing, a Southern California shopping center, and a New York style glass and steel canyon. These developments reflect changes in competition and opportunity in the real estate sector. In the 1980s developers began to realize that great opportunity lay in building integrated megaprojects, as such projects ``enjoy enhanced profitability because each facility fed the other, by attracting and circulating custom'' (Dick and Rimmer, 1998, page 2312). The result was competition to increase the scale and scope of these developments in order to provide the highest quality of amenities. In order to realize such projects, some developers have moved into banking and constructionö thus internalizing financial capacity and managing costs (Sajor, 2003). They have also tapped into sources of capital from international ethnic Chinese networks and large development companies in other countries in the region. The largest have also endeavored to `diversify' their holdings by following trends in urban development, and in some cases shaping them to their own benefit. In particular, expansion to the rapidly growing provinces of Laguna and Cavite to the south of Metro Manila, and to a lesser extent the area around the emerging export-processing zones in the former Subic and Clark military bases to the north, have come to be seen as key to future profitability. For this reason they have also been strong proponents of, and sometimes investors in, transportation infrastructure aimed at opening up these regions for investment. Real estate interests have in some cases played a more direct role in connecting mass transit and toll road projects in recognition of the importance of these developments for their property holdings. For example, the MRT-3 light-rail transit line, completed in 2000, was developed by a consortium that included four property developers, the most prominent of which was Ayala Land (World Bank, 2004). The experience of Ayala Land illustrates how developers have attempted to shape the metro region to the ends of corporate profit. One of the oldest family-owned companies in the country, Ayala Land began to establish its identity as a property Urban megaprojects and the privatization of planning in Southeast Asia 391 MRT-3 MRT-3 extension (proposed) 0 3.75 7.5 15 km Figure 1. Major real estate and infrastructure projects in Metro Manila and its surrounding region (sources: 3rd Island Corporation, 2005; Asiatype, Inc., 2005; Bases Conversion Development Authority, 2005; Filinvest Corporate City, 2005; Orejas, 2005; Ortigas Center, 2005; Philippine National Railways Authority, 2005; Rockwell Center, 2005; UTP, 2003; Wikipedia, 2005a; 2005b; 2005c). Notes: The map displays a selection of prominent road and real estate projects. Polygons for real estate developments are approximations and may not be to scale. 392 G Shatkin developer with the development of the first integrated megaproject in the country, the Makati CBD, in the period after World War Two (Zobel de Ayala, 1983). The company was also one of the first to recognize the importance of the region's southern expansion, and developed a second megaproject, Ayala Alabang, in southern Metro Manila. This was developed on a large lot purchased from a prominent local landowner (Ayala Land Inc., 2004). More recently, as the status of the Makati CBD has begun to face challenges from newer developments with lower rents, the company has sought to maintain its lead in this segment of the market by purchasing a controlling stake in the Fort Bonifacio Global City development after the financial crisis of 1997 led to the collapse of the original consortium of developers. The company has continued its southern expansion with the purchase of development rights to large tracts of land in Laguna, where it plans to build Ayala Westgrove Heights. It has also become a major player in the development of industrial estatesöits Laguna Technopark is the country's premier industrial park. Ayala Land has moved