POGO ban to have little impact on property developers

The government’s ban on Philippine offshore gaming operators (POGOs) will have minimal effect on the property development industry, several major players said in a report by BusinessWorld.

Ayala Land Inc. (ALI) president and CEO Anna Ma. Margarita Bautista-Dy said the company’s residential and office space businesses have limited POGO exposure. Only 1% of its office portfolio is occupied by POGOs, and sales to Chinese buyers – whether linked to POGO or not – are negligible. ALI also found that less than 5% of its residential units are occupied by POGOs or their employees.

SM Investments Corp. (SMIC) and Filinvest REIT Corp. (FILRT) also said the ban would not affect their businesses. SMIC, through its property arm SM Prime Holdings Inc., has diversified its tenant mix. FILRT has been POGO-free since the second quarter of 2022.

Shang Properties Inc. said its residential buyers are primarily Filipinos, with a mix of foreign buyers outside of China.

President Ferdinand Marcos Jr. ordered a complete POGO ban last month, citing links to crime and corruption. The Philippine Amusement and Gaming Corp. is tasked to close all POGO facilities by year’s end.

Several other companies, including listed digital gaming firm DigiPlus Interactive Corp., have distanced themselves from POGOs and internet gaming licenses.