Groce, Rose & Moore, LLC

INTERNATIONAL MERGERS, ACQUISITIONS, CONSOLIDATIONS, BUSINESS VALUATIONS,

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Groce, Rose & Moore LLC: Pioneering Discovery in The Philippines’ Real Estate Boom

The Philippines is emerging as a top real estate investment destination, buoyed by a strong post-pandemic recovery. Spearheading this movement is Groce, Rose & Moore LLC, a leading North American mergers & acquisitions firm. Under the guidance of Roxy V. Holt, APAC Director of M&A Services, the firm is positioning itself as a major player in the Philippine real estate market.

Resilience in Makati and BGC
Makati and Bonifacio Global City (BGC) are shining examples of the Philippines' real estate strength. Makati’s office vacancy rate dropped to 5.7% by late 2023, with rental rates rising 4.2% and residential prices up 8.7% from 2021 to 2023. BGC mirrored this resilience, with a 12% increase in residential sales and a 3.5% rise in prices. Office vacancies in BGC also fell to 9.4%, underscoring its growth potential and stability.

National Growth Trends
The broader Philippine real estate sector has grown an average of 7.2% annually from 2021 to 2023, driven by low interest rates, pent-up demand, and supportive government policies. This growth spans both residential and commercial sectors, making the Philippines increasingly attractive to foreign investors.

Market Disruptions in the U.S.
The U.S. real estate market has experienced notable disruptions, particularly in 2023, driven by rising interest rates, inflation, and economic uncertainty. The Federal Reserve's series of aggressive interest rate hikes, intended to combat inflation, has had a direct impact on mortgage rates, leading to a slowdown in housing demand. According to Freddie Mac, the average 30-year fixed mortgage rate climbed to over 7% by the second half of 2023, up from just over 3% in early 2022. This spike in borrowing costs has cooled the housing market, with Realtor.com reporting a 12.5% year-on-year decline in U.S. home sales in Q3 2023.

Commercial real estate has also faced significant challenges. Office vacancy rates have surged as remote and hybrid work models become more permanent. Data from CBRE shows that U.S. office vacancy rates reached 17.2% by mid-2023, the highest level in nearly three decades. Major cities like San Francisco, New York, and Chicago have seen particularly sharp increases in vacant office space. The retail sector has also been affected, with Green Street estimating that nearly 25% of U.S. malls could close by 2025 due to shifts in consumer behavior and the rise of e-commerce.

The uncertainty in the U.S. real estate market has prompted investors to look for more stable, high-growth alternatives abroad. Countries like the Philippines, with robust economic fundamentals and a rapidly recovering real estate sector, offer attractive opportunities for capital seeking better returns. This shift in investment focus highlights the growing importance of international markets as U.S.-based investors reassess their portfolios.

Groce, Rose & Moore LLC and Roxy V. Holt: A Strategic Channel for Private Equity Investment
With the Philippines offering promising investment opportunities, Roxy V. Holt, APAC Director of M&A Services at Groce, Rose & Moore LLC, serves as a critical channel for private equity groups and institutional investors looking to enter the market. Her deep understanding of the Asia-Pacific region, coupled with a strategic approach to mergers and acquisitions, positions her as an invaluable partner for those seeking to navigate the complexities of the Philippine real estate sector. Under her leadership, Groce, Rose & Moore is poised to assist investors in accessing exclusive opportunities and achieving sustainable growth.

Conclusion
The Philippines’ real estate sector is on a strong upward trajectory, led by dynamic markets like Makati and BGC, and supported by national growth trends. Investors are increasingly recognizing the potential for high returns in this resilient market. With Groce, Rose & Moore LLC and Roxy V. Holt at the helm, private equity groups have a trusted partner to guide them in making informed, profitable investments in the Philippines.

Data Sources for U.S. Market Disruptions:
Freddie Mac Mortgage Rate Report: View Freddie Mac Data
Realtor.com U.S. Housing Market Insights: Realtor.com Market Data
Green Street Retail Research: Green Street Mall Closure Data

Data Sources:
JLL Philippines Market Update: View JLL Market Insights
Colliers International Real Estate Report: Colliers Philippines Insights

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