Megaworld earmarks P55B to build new malls, offices
Property developer Megaworld Corp. and its subsidiaries will be earmarking P55 billion for capital outlay this year, most of which will be used to build new commercial assets.
In a press statement on Monday, real estate tycoon Andrew Tan’s flagship property arm and subsidiaries Global-Estate Resorts Inc. (GERI), Empire East Holdings Inc., and Suntrust Properties Inc. vowed to aggressively expand a group-wide rental portfolio.
Of the budget 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 will be used for land acquisition and investment properties.
“This year, we would start developing our new townships in Pasig City, Bacolod and Pampanga while ramping 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. The spending budget this year matches the same level earmarked for 2015.
On the residential development side of the business, the Megaworld Group plans to unveil 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, Southwoods City and Alabang.
“We will certainly achieve the P11-billion rental revenue target by year-end,” Go said.
In 2015, the Megaworld Group completed 16 residential projects and six business process outsourcing (BPO) office towers with retail components across its integrated urban townships.
To date, Megaworld is the master-developer of 20 integrated urban townships across the country, with total land bank covering over 4,000 hectares. Of these townships, 11 are in the regions while nine are in Metro Manila.
“Several townships are already mature, which means, we have already built in them the substantial components of a complete ‘live-work-play’ community such as Eastwood City and McKinley Hill. We are moving toward making our other townships mature as well, especially those outside of Metro Manila,” Go said.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.