Megawide Construction Corp. plans to list its property unit PH1 World Development Inc. in the Philippine Stock Exchange as early as 2025.
Megawide chairman Edgar Saavedra said in an interview the property firm plans to launch two residential projects annually over the next few years, including mid-rise buildings and house-and-lot developments to strengthen its portfolio.
“In 10 years, we will have an order book of P200 billion,” Saavedra said.
He said that given PH1 World’s expansion plans, he expected the property business to be bigger than its construction business in terms of earnings before interest, taxes, depreciation and amortization (EBITDA).
“Annually our EBITDA for construction is usually P2 billion to P3 billion. By 2025, the property will be around P4 billion to P5 billion,” Saavedra said.
PH1 World has three ongoing projects with total sales value of P20 billion. These are Northscapes San Jose Del Monte (SJDM) in Bulacan, Modan Lofts in Quezon City and Modan Lofts Ortigas Hills in Taytay City.
Two more are in the pipeline which are located in Trece Martires in Cavite and Cebu.
Saavedra said PH1 World would continue to target the affordable and middle-income markets, which remain the stable segments of the residential sector.
He said the government’s move to increase the value added tax exemption for house-and-lot projects and other residential dwellings to P3.6 billion and below would have a positive impact on the property market.
The stabilizing and easing interest rates also bode well of the housing market, he said.
Megawide ventured into property development last year when it acquired PH1 World, the property arm of its parent firm Citicore Holdings Investments Inc. for P5.2 billion.