AGI expects bigger earnings from provincial projects
Megaworld Corp. is on track to hitting its goal of posting some P95 billion in residential reservation sales this year, with areas outside Metro Manila seen making a significant contribution as the group unlocks gains from geographical diversification in recent years, said Kingson Sian, executive director of Megaworld and president of parent firm Alliance Global Group Inc.
The group last year reported P85 billion in reservation sales, which were indicators of future revenue growth from residential developments.
About 20 percent of reservation sales were coming from areas outside of Metro Manila, Sian said, as new developments such as The Mactan Newtown in Cebu and vineyard resort community Twin Lakes in Tagaytay had started contributing new businesses.
In the past, he said residential business relied heavily on projects in Metro Manila.
Sian said Metro Manila was a key driver of economic growth. Economic growth, however, had actually been trickling down to the provinces, he said in a briefing after the annual stockholders meeting of AGI on Tuesday.
“A few years back, we decided to go to key cities outside Metro Manila to capture that growth,” he said. “Over time, that will grow because we have a lot of projects outside Metro Manila.”
In the first half, Megaworld’s reservation sales hit P48 billion.
At present, Megaworld has land inventory of 4,347 hectares, including those held by subsidiaries Global-Estate Resorts Inc., Suntrust Properties and Empire East.
“Underpinned by Megaworld Corp., Emperador Inc., Travellers International Hotel Group Inc. and Golden Arches Development Corp. (GADC), AGI’s vision is to increase shareholder value via higher stock returns and consistent dividend payments,” Sian said.
“Our steadfast focus, being one of our greatest strengths, coupled with having dominance in township real estate, liquor, gaming, and quick service restaurant (QSR) makes us a compellingly strategic investment,” Sian added.
GADC holds the exclusive right to operate restaurants in the Philippines under the “McDonald’s” brand.
AGI chair Andrew Tan told stockholders: “We look forward with utmost confidence and optimism that the years ahead will bring us to a new level of growth on a global scale. We are leveraging on a significant measure of success to pursue greater goals, made more reassuring by a highly consumer-centric portfolio, contributing to the country’s economy.”
