Megaworld sets P60B capital spending this 2017
Tycoon Andrew Tan-led property developer Megaworld Corp. has earmarked P60 billion for group-wide capital outlays this year, mostly to fast-track township developments across the country.
Megaworld is expected to disburse this amount along with subsidiary brands Empire East Holdings, Inc., Global-Estate Resorts, Inc. (GERI) and Suntrust Properties Inc.
In a press statement on Wednesday, Megaworld said 80 percent of the capital spending for the year would be to accelerate and expand projects in various townships across the country, particularly on the construction of new residential condominiums, office towers, commercial centers and hotels.
The remaining 20 percent will be used for land acquisition and investment properties.
“Since our company’s cash position remains healthy, we will mostly utilize internally-generated
funds to finance our capital spending for the year, and we will also tap the debt market through the
proceeds of the first tranche of our P30-billion retail bond program,” Megaworld treasurer Francis Canuto said.
This year, Megaworld has vowed to fast-track most of its developments in existing townships,
particularly in McKinley West, Uptown Bonifacio, Davao Park District, Iloilo Business Park,
Boracay Newcoast, Twin Lakes and Alabang West.
The group is expected to launch 20 residential projects in Uptown Bonifacio, McKinley West and
McKinley Hill, all in Fort Bonifacio; Iloilo Business Park in Mandurriao, Iloilo City; The Capital
Town in the City of San Fernando, Pampanga; Maple Grove in General Trias, Cavite; Eastland
Heights in Antipolo, Rizal; Boracay Newcoast in Boracay Island; Sta. Barbara Heights in Iloilo; and
Twin Lakes near Tagaytay. This will bring to the property market P31.2 billion worth of new inventory.
Megaworld is also adding seven new office towers in Iloilo Business Park, Newport City,
Eastwood City, Southwoods City and Las Pinas City. For the retail property business, six new lifestyle malls and commercial centers will rise in McKinley West, Boracay Newcoast, Iloilo Business Park, Las Pinas City and Makati City.
“While we expand our existing residential properties and introduce more residential products in our
townships this year, we continue to focus on our goal towards doubling our rental revenues by 2020. The country’s sound business climate allows us to further grow our office and commercial leasing businesses towards a strong and stable recurring income base,” Canuto added.
