Megaworld Corp., the property unit of business tycoon Andrew Tan, increased its rental income target in 2016 to P11 billion from the original estimate of P10 billion amid an aggressive rollout of office buildings, hotels and commercial developments.
Megaworld said in a statement it would complete 650,000 square meters of office towers, malls and commercial centers this year to add to the company’s overall rental portfolio.
It also expects recurring income to rise by over 20 percent by the end of 2016.
“We are on track in strengthening our office and mall portfolio as we continue to experience robust demand for spaces, both office and retail, in our townships. Both our offices and retail spaces enjoy a very high occupancy rate of around 99 percent across our developments,” Megaworld senior vice president Jericho Go said.
Megaworld said at least 10 office towers in Uptown Bonifacio, McKinley West, The Mactan Newtown and Iloilo Business Park would be completed by year-end. These new office towers will add a gross floor area of 287,500 square meters.
The company has over 150 companies in its portfolio of office tenants, mostly from the information technology and business process outsourcing sector. Megaworld townships have become home to some of the world’s biggest IT-BPO companies, such as Accenture, Wells Fargo, HP, IBM and United Health Group.
Megaworld, meanwhile, said 11 malls and commercial centers with a total gross floor area of 371,000 square meters were slated for completion this year.
The commercial centers are located in McKinley Hill, Uptown Bonifacio, McKinley West, The Mactan Newtown, Iloilo Business Park, ArcoVia City, Southwoods City and Makati.
“Our malls and commercial centers primarily cater to our growing residents and BPO workers in our townships. Megaworld offers a ‘ready market’ to our retail partners. In McKinley Hill, for example, where we have around 80,000 BPO workers and 12,000 residents. They are the primary customers of Venice Piazza, Tuscany and the upcoming Venice GrandCanal Mall,” Go said.
Megaworld’s rental arm was the fastest growing business segment in the first nine months of 2015, soaring to a record year-on-year growth of 24 percent to P6.44 billion from P5.20 billion.