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Aboitiz InfraCapital - Raising the profile of Philippine industrial estates
As the Philippines joins the ranks of the world’s newly industrialized countries, the need to advance and raise the profile of industrial estates in the country becomes all the more important. Aboitiz InfraCapital Economic Estates are built to stimulate economic growth in specific regions in the country by bringing in foreign capital, encouraging local investments, and generating employment opportunities for thousands of Filipinos.
Aboitiz InfraCapital works with the government on both local and national levels to develop and operate more of these master-planned industrial communities. Today, the conglomerate’s Economic Estates span 1,400 hectares of development across the Philippines, and are home to upwards of 200 world-class companies and industry leaders that directly employ over 100,000 people. Aboitiz InfraCapital Economic Estates blend industrial, commercial, retail and residential spaces seamlessly to create communities that grow alongside businesses.
Our Projects and Investments
Mactan Economic Zone 2 Estate
Location: Lapu-Lapu City, Cebu
Learn More Mactan Economic Zone 2 Estate
Aboitiz InfraCapital Economic Estates - FAQs
What are Economic Estates?
Aboitiz InfraCapital Economic Estates are fully-integrated, PEZA-registered mixed-use industrial-anchored estates located in Batangas and Cebu.
Spanning over 1,400 hectares of land, these Economic Estates offer industries and other businesses sustainable and self-sufficient ecosystems complete with built-in water and power utilities as well as on-site construction services.
These Economic Estates showcase Aboitiz InfraCapital’s experience and expertise in the realms of estate operations and management, and business and product development. With numerous existing commercial, residential, and institutional options—with space for many more—these Economic Estates present multi-faceted, vibrant townships filled with economic activity powered by local communities
Where are the Economic Estates located?
Our Economic Estates are located in Luzon and the Visayas, and include:
- MEZ2 Estate, a 63 hectare PEZA registered zone in Lapu-Lapu City, adjacent to the Mactan Cebu International Airport.
- West Cebu Estate, a 800 hectare PEZA registered zone in Balamban, just over 50 km from Cebu City, and known as the Shipbuilding Capital of the Philippines.
- LIMA Estate, our largest project, is a nearly 800 hectare PEZA registered zone in Lipa and Malvar, Batangas, situated at the heart of CALABARZON, the Philippines’ most well-known, and premier, center of industry.
Why invest in the Philippines?
The Philippines, gateway to Southeast Asian markets, has a steadily growing economy that has continuously thrived despite the pandemic and intermittent challenges that comes with it. Its strong GDP growth and accommodating nature when it comes to business makes it a relatively safe and smart investment choice. Given its competitive rates and costs of doing business, it offers an enticing and accessible advantage among other investment options in the region.
| Economy | Workforce | Cost of Doing Business |
|---|---|---|
| $ 10.5 Billion Foreign Direct Investments 2021 | 47.7 Million Labor Force Size 2021 | $ 308.23 Minimum Monthly Wage Rate 2022 |
| 5.7% GDP Growth Rate 2021 | 96.29% Literacy Rate 2022 | $ 0.11 Electricity Rate per Kilowatt Hour 2022 |
| 6.5% GDP Growth Forecast 2022 | 25.7 Median Age 2021 | $ 186 Average Industrial Construction Costs per SQM 2021 |
Historically a strategic location among trading routes, the country continues that legacy today, acting not just as a hotspot for international shipping and travel, but a must-visit destination for commerce, culture, and tourism as well.
What are the advantages of locating a business in a PEZA zone?
While the Philippines’ strength in human capital, strategic location, and business-friendly economy makes it an attractive investment opportunity, it also rewards businesses who choose to grow its roots in the country.
The Philippines offers fair and reasonable taxation rates comparable to the rest of the region. While the maximum percentage of foreign ownership is only 40%, the frequent tax holidays and tax rates after such holidays offer much potential for profit.
Further, the Philippine Economic Zone Authority (PEZA) incentivizes foreign and local investment in PEZA Special Economic Zones. Investors that set up their businesses in these locations are entitled to a wide range of fiscal and non-fiscal incentives.
Some basic PEZA incentives include but are not limited to the following:
Fiscal incentives
- Duty-free imports, including raw materials, machinery, spare parts, and more
- Income tax holidays
- No export tax, wharfage dues, or other customs dues
- VAT exemptions, subject to PEZA and BIR requirements
- No Expanded Withholding Tax
Non-Fiscal Incentives
- Special non-immigrant visa with multiple entry privileges for foreign nationals and certain members of their families, subject to local conditions
- Expedited import-export procedures
- Extended visa facilitation assistance to qualified foreign nationals, as well as to specific family members
New locators at Aboitiz InfraCapital’s Economic Estates are also well-positioned to take advantage of the liberal amendments to the country’s tax regime that are now mandated by the Corporate Recovery and Tax Incentives for Enterprises Act, otherwise known as the CREATE Law. It was passed by the congress as a means to provide both foreign and domestic enterprises operating in the Philippines fiscal relief amidst the COVID-19 pandemic.
The CREATE Law is meant to replace the Corporate Income Tax and Incentives Rationalization Act or CITIRA. At its core, it is designed to lower the corporate income tax rate and to rationalize the fiscal benefits of qualified companies in order to attract and incentivize new foreign and local investments in the Philippines.
What differentiates Aboitiz InfraCapital Economic Estates from other industrial developers in the Philippines?
Aboitiz InfraCapital Economic Estates has 3 decades of experience in delivering innovative concepts through its Mixed-use Estates, which are anchored on industry, and complemented by a mix of commercial, residential, and institutional uses. We are at the forefront of smart and sustainable industrial estate development as validated by LIMA Estate, the very first, the largest, and the only Industrial Estate in the Philippines that received the 5-Star BERDE-District Certification from the Philippine Green Building Council (PhilGBC).
We are a locally and globally-recognized leader in industrial anchored development as validated by the numerous accolades we have received for the past years:
- Best Industrial Developer in Asia for Aboitiz InfraCapital Economic Estates, 17th PropertyGuru Asia Property Awards
- Best Industrial Development for LIMA Estate, 17th PropertyGuru Asia Property Awards
- Best Green Development for LIMA Estate, 17th PropertyGuru Asia Property Awards
- Leadership in Sustainable Design and Performance Award for LIMA Estate, PhilGBC Green Building Awards 2022
- Best Industrial Developer for Aboitiz InfraCapital Economic Estates, 10th PropertyGuru Philippines Property Awards
- Best Industrial Development for LIMA Estate, 10th PropertyGuru Philippines Property Awards
- Best Central Business District for LIMA CBD, 10th PropertyGuru Philippines Property Awards
- Best Green Development for LIMA Estate, 10th PropertyGuru Philippines Property Awards
- Special Recognition in Sustainable Design and Construction for Aboitiz InfraCapital Economic Estates, 10th PropertyGuru Philippines Property Awards
- Most Innovative Industrial Development Company – Philippines 2022 for Aboitiz InfraCapital Economic Estates, 8th Global Business Outlook Awards
These recognitions are not only a testament to the Philippines being an attractive destination for foreign investment, but it also shows that our team’s expertise in developing and operating industrial estates is at par with the highest global standards.
Further, one of the foundations of LIMA Estate’s value proposition is that it is able to leverage the strength of its affiliates in power, water, and construction within the Aboitiz Group, one of the country’s oldest and largest conglomerates.
How is Aboitiz InfraCapital Economic Estates leading the sustainable industrial development in the Philippines?
Over the past 30 years, Aboitiz InfraCapital Economic Estates has been committed to advancing industries and life. We uphold best practices in environmental management, social responsibility, and good governance within our Economic Estates, as well as in the communities wherein we operate.
Since 2021, we have been working with the Philippine Green Building Council on a pilot program for BERDE District Certification.
BERDE, or Building for Ecologically Responsive Design Excellence, is a tool utilized by the Philippine Green Building Council to assess, measure, monitor, and certify the performance of green building projects that go above and beyond existing laws, regulations and mandatory standards.
It’s important to note that the tool is not only recognized as a benchmark locally, but it is also guided by the World Green Building Council’s internationally-recognized standards for green development.
We are honored to be the first and only Industrial Estate in the Philippines to receive BERDE District Certification for LIMA Estate, and we are also very proud to have set the bar high for those that will follow, by having achieved the maximum 5 star rating. In the process we also became the largest project of any kind in the Philippines, to achieve this certification.
Adding to that, LIMA Estate also recently won the 2022 PhilGBC Leadership in Sustainable Design and Performance Award for the Commercial subcategory, an award that recognizes pioneering green building projects that set new benchmarks for sustainability.
And last October 2022, PropertyGuru Philippines Property Awards, named LIMA Estate Best Green Development, and also awarded us with the Special Recognition for Sustainable Design and Construction Award.
These achievements are validation of our commitment to sustainable development, including the contribution of our projects to health and well-being, community engagement, and economic opportunities. We recognize the responsibility that comes with leadership, given how many people our projects impact.