Tycoon Andrew Tan-led Megaworld Corp. is aiming for P20 billion in annual recurring income from its commercial, office and hotel portfolio by 2020, more than doubling the level posted in 2015.
For full year 2015, Megaworld’s rental income amounted to P9 billion.
Megaworld announced that in the next three years, the company would complete close to one million square meters of fresh property inventory that would yield rental earnings, mostly office, lifestyle malls and commercial space around its 22 townships and integrated lifestyle communities across the country. This is seen to bring the company’s total rental space to more than 2.5-million square meters by 2020.
“While we remain strong in our residential condominium business, it is also imperative for us to also fortify our rental portfolio. This direction will not only allow us to become a stronger and more sustainable company, but at the same time, we address the increasing demand for these spaces in our various townships,” Megaworld senior vice president Jericho Go said in a press statement on Wednesday.
Of total rental portfolio that Megaworld expects to build by 2020, around 1.5 million square meters will consist of office space across the country.