Newly listed PNB Holdings Corp. has signed a lease agreement with creative agency RNDMD for office space at PNB Makati Center along Ayala Avenue, adding a fresh tenant to the property as the company works to build occupancy.

In a disclosure on Thursday, PNB Holdings said RNDMD had opened a new creative studio at the property.

“The leasing activity supports PNB Holdings’ strategy of maximizing recurring rental revenues from its portfolio of prime commercial properties while creating additional value through targeted asset enhancement initiatives,” the company said.

PNB Makati Center, situated along Ayala Avenue in Makati’s central business district, offers about 35,000 square meters (sq.m.) of gross leasable area and is currently 86% leased, according to PNB Holdings. Its tenant mix spans corporate offices, traditional office users, and flexible workspace operators. The company expects occupancy to climb further as leasing activity continues and additional tenants begin operations in the coming months.

Occupancy is the core gauge for a leasing-driven business: every signed lease converts vacant space into the recurring rental revenue the company has made the centerpiece of its strategy, which is why each new tenant added to the 35,000-sq.m. asset moves the needle on its income base.

Ground-Floor Enhancements

PNB Holdings is also upgrading the property’s ground floor with new food, beverage, and lifestyle concepts. The additions are intended to raise activity at the property and provide more amenities for tenants and visitors — moves meant to serve the building’s office population while also drawing visitors who are not tenants.

“While office leasing remains the property’s primary driver, these improvements are intended to enhance tenant experience, increase visitor traffic, and further strengthen the long-term competitiveness of the asset,” PNB Holdings said.

Portfolio Expansion Plans

The signing comes as the company pursues opportunities to expand its property portfolio. Last week, PNB Holdings said it was in talks with several property owners over possible acquisitions in Metro Manila, to add income-generating assets while waiting for market conditions to improve before embarking on the large-scale redevelopment of its Makati and Pasay properties.

The Lucio Tan-led property company is primarily interested in completed and operating buildings in strategic locations that can immediately generate recurring income, rather than undeveloped land that would take years to produce cash flow, its chief financial officer said previously. The progress of those acquisition talks — and whether market conditions eventually clear the way for the Makati and Pasay redevelopment — are the natural watch points as the newly listed company rounds out its portfolio.

Shares in PNB Holdings closed unchanged at P1.20 apiece on Thursday. — Alexandria Grace C. Magno