RIDING THE BOOM. Megaworld’s Jericho Go showing off some of the new towers of the property firm. File photo by Chris Schnabel/Rappler
MANILA, Philippines – Andrew Tan-led Megaworld Corporation set a capital spending budget of P55 billion ($1.17 billion) this year, mainly to build more office buildings and shopping malls that will boost its rental portfolio.
Megaworld’s programmed spending for 2016 includes the spending of its subsidiaries Global-Estate Resorts, Incorporated (GERI); Empire East Holdings, Incorporated; and Suntrust Properties, Incorporated.
At least 75% of the P55 billion ($1.17 billion) will be used for the construction of new malls, commercial centers, office buildings, and residential projects in townships.
The remaining 25% will be used for land acquisition and investment properties.
Megaworld senior vice president Jericho Go said the property firm will start developing its new townships in Pasig City, Bacolod, and Pampanga.
It will also ramp up office and mall developments across existing townships.
“We are bullish on the office and retail sectors because we see a remarkable growth in these businesses,” Go said in a statement to the stock exchange.
The group is set to launch 14 office towers, malls, and commercial centers in McKinley West, Uptown Bonifacio, The Mactan Newtown, Iloilo Business Park, Arcovia City, Southwoods City, and Alabang.
“We will certainly achieve the P11-billion ($235.04 million) rental revenue target by year-end,” Go said.
For its residential business, Megaworld said it is also set to launch 14 projects in Metro Manila, Pampanga, Iloilo, Tagaytay, Cavite, Davao, Baguio, and Batangas this year.
In 2015, the Megaworld Group completed 16 residential projects and 6 business process outsourcing (BPO) office towers with retail components across its integrated urban townships.
Megaworld currently has 20 integrated urban townships across the country, and its total land bank spans over 4,000 hectares nationwide.
“Several townships are already mature, which means, we have already built in them the substantial components of a complete live-work-play community such as Eastwood City and McKinley Hill. We are moving towards making our other townships mature as well, especially those outside of Metro Manila,” Go said.
Megaworld owns 100% of Suntrust Properties, 82% of GERI, and 82% of Empire East.
It has already built over 350 residential, office, and commercial towers in the Philippines. – Rappler.com