Property developer Megaworld Corp. earmarked P65-billion in capital spending this year primarily to roll out more residential, office and mall projects across its township developments and acquire more land.
Megaworld said in a disclosure to the stock exchange that at least 80 percent of the capital expenditures would be allocated for property development within its 23 townships while the remaining 20 percent would be used for land acquisition and investment properties.
“We are ramping up our residential properties in our portfolio this year as we have seen a remarkable spike in residential demand across our townships, both in Metro Manila and in the provinces,” Megaworld executive vice president Kevin Tan said.
“Likewise, we remain focused on cementing our leadership in the office category by launching more office spaces, and we are looking into opening more lifestyle malls as we keep track of our goal towards P20-billion in rental revenues by next year,” he said.
Megaworld, led by billionaire Andrew Tan, said it would launch 28 new residential towers this year in its townships in key regional centers including Cebu, Bacolod, Pampanga, Cavite, Laguna, Boracay, Rizal, Batangas, Pasig, Quezon City, Taguig and Paranaque City.
These projects are expected to generate around P90 billion in residential sales.
The company is also expected to start the construction of five new office projects and complete some ongoing mall and commercial properties across the country.
Five new office towers are expected to start construction covering around 116,000 square meters in gross leasable spaces while another five new office towers are slated for completion this year with total gross leasable area of around 189,000 sqm.
Meanwhile, five commercial properties are expected to be completed within the year in McKinley Hill in Fort Bonifacio, Arcovia City in Pasig City and Davao Park District in Davao City. These will give an additional 9,000 sqm of gross leasable spaces in its commercial retail portfolio.
“On our rental portfolio, we are allocating most of our capex in the completion of new office and lifestyle mall developments across our townships,” Tan said.
Megaworld’s leasable properties are expected to climb to 2.14-million sqm, with office properties accounting for almost 60-percent, by end-2019.