Megaworld sets P55B capital spending

PROPERTY developer Megaworld Corp. and its subsidiaries earmarked P55 billion for capital outlays this year, mostly to build new commercial assets that would expand leasing income.

In a press statement on Monday, real estate tycoon Andrew Tan’s flagship property group – which also includes Global-Estate Resorts, Inc. (GERI), Empire East Holdings, Inc., and Suntrust Properties Inc. – vowed to aggressively expand group-wide rental portfolio.

Of the total capital expenditure budget for this year, 75 percent will be used for development projects, particularly for the construction of new malls, commercial centers, office buildings and residential projects in townships. The remaining 25 percent of the budget will be used for land acquisition and investment properties.

The spending budget this 2016 matches the same level of actual capital expenditure last year.

“This year, we will start developing our new townships in Pasig City, Bacolod and Pampanga while we ramp up our office and mall developments across our existing townships. We are bullish on the office and retail sectors because we see a remarkable growth in these businesses,” Megaworld senior vice president Jericho Go said in a press statement.

On the residential development side of the business, the Megaworld Group plans to launch 14 residential projects in Metro Manila, Pampanga, Iloilo, Tagaytay, Cavite, Davao, Baguio and Batangas within this year.

The group is also launching 14 office towers, malls and commercial centers in McKinley West, Uptown Bonifacio, The Mactan Newtown, Iloilo Business Park, Arcovia City, SouthwoodsCity, The Mactan Newtown and Alabang.

“We will certainly achieve the P11-billion rental revenue target by year-end,” Go said.