Megaworld reputation intact despite Corona trial, analysts say
THE MCKINLEY Hill CyberPark is the community’s own Peza-accredited ecozone. Photos by Tessa R. Salazar
The ongoing impeachment trial against Chief Justice Renato Corona won’t affect high-end property developer Megaworld’s reputation, according to property analysts when asked by Inquirer Property on the positive and adverse effects of Megaworld’s involvement in the trial.
Megaworld has been in the hot seat the past few days when its officers were subpoenaed to shed light on the 303-square-meter Bellagio unit purchased by Corona in 2009 at a substantially reduced rate. The impeachment trial has made Megaworld and its Bellagio project (located at the 5-hectare Forbes Town Center at Bonifacio Global City near its 50-hectare McKinley Hill township in Taguig City) instant household names.
“As far as I know, I do think the market and buyers will be indifferent as far as Megaworld is concerned about the whole Corona issue. If at all, it is free advertising for Megaworld. The buyers in particular will see past this situation as Megaworld has built a reputation and brand that will carry them through this gracefully,” said veteran property analyst David T. Leechiu, country manager of Jones Lang LaSalle Leechiu.
Enrique Soriano, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, also agreed with Leechiu’s observation, citing “perceived indifference among buyers as they know it’s a political activity.”
Soriano added that “Megaworld is a dominant and innovative player and a first tier stock in the exchange. It has already established equity among players. Its being a market leader and a listed company has created goodwill and image to its buyers and stockholders.
“This current political exercise may just be a temporary setback and for as long as Megaworld’s fundamentals remain sound, a differentiated and sustained value proposition and well-defined vision, the company will not be affected,” Soriano said.
Megaworld has earned the distinction of being the country’s largest residential condominium developer on top of being the country’s leading BPO office developer and landlord.
“Negative publicity is still publicity,” said one property research analyst who requested anonymity because he was not authorized by his company to speak on the issue. “I just hope they (the developer) stop stressing that the unit was water damaged or unfinished (semi-bare) because it doesn’t sit well with those who know the market.”
Megaworld management, meanwhile, has directed its communications office to refrain from answering questions in connection with its involvement in the impeachment trial in deference to the Senate proceedings.
Before the impeachment trial began, Inquirer Property was able to tour the 50-hectare McKinley Hill in Taguig City—a mere five-minute drive from the Forbes Town Center (where Bellagio is located). The township has a mix of houses, garden villas and condominiums in its residential block. It also features a retail complex, a cyber park and an institutional section with international schools and embassies.
Megaworld is also a founding member of Berde (Building for Ecologically Responsive Design Excellence), the first green building rating system designed by Filipinos. Megaworld chose to have the green pilot project for communities in McKinley Hill as “this bodes well for us since we develop mostly townships that differentiates us from other developers,” said Rommel Orbigo, Megaworld assistant vice president for marketing communications, during a previous interview.
Orbigo added that McKinley Hill, being a community covering all aspects (residential, office, retail, schools etc), will have to play a role in its green components. Megaworld and its property management arm First Oceanic, he said, would have to work to get everyone’s support for this initiative.
