Megaworld Corporation’s McKinley West development perspective in Fort Bonifacio, Metro Manila.
Megaworld Corporation (PSE: MEG) revealed on Wednesday through a disclosure to the Philippine Stock Exchange (PSE) that the property giant will allocate P60 billion for project expansions. Megaworld treasurer, Francis Canuto, said that the company’s cash position remains healthy; thus, allowing the company to tap internally-generated funds to finance its capital spending in 2017.
Here are three fast facts on Megaworld’s expansion plans:
1. Megaworld will expand through its subsidiary brands Empire East Holdings, Inc., Global-Estate Resorts, Inc. (GERI) and Suntrust Properties, Inc.
Megaworld said that the company intends to spend 80 percent of the P60 billion capital expenditures (capex) to expanding projects in various townships across the country, particularly on the construction of new residential condominiums, office towers, commercial centers, and hotels. The remaining 20 percent will be used for land acquisition and investment properties.
2. Megaworld is set to fast-track more projects this year. It will also launch several property projects.
Megaworld Group is set to fast-track most of its developments in existing townships, particularly in McKinley West, Uptown Bonifacio, Davao Park District, Iloilo Business Park, Boracay Newcoast, Twin Lakes and Alabang West. There will also be 20 residential projects set to launch this year, including the projects in Uptown Bonifacio, McKinley West and McKinley Hill, all in Fort Bonifacio; Iloilo Business Park in Mandurriao, Iloilo City, The Capital Town in the City of San Fernando, Pampanga, among others. Megaworld said these projects are projected to have a sales value of P31.2-billion.
Megaworld will also launch seven new office towers in Iloilo Business Park, Newport City, Eastwood City, Southwoods City and Las Pinas City; and six new lifestyle malls and commercial centers in McKinley West, Boracay Newcoast, Iloilo Business Park, Las Pinas City and Makati City.
3. Megaworld said it intends to double its rental revenues. It sees rental income to reach P20 billion by 2020.
“The country’s sound business climate allows us to further grow our office and commercial leasing businesses towards a strong and stable recurring income base,” Canuto said in a press statement. In the Philippines, the Business Process Outsourcing (BPO) industry continues to be one of the main drivers of commercial rental demand.
Megaworld said earlier that the country’s BPO companies are unlikely to leave and bring back such jobs to the US, even with President Trump’s pronouncements on his “America First” policies. “On the BPO side, I have to say first and foremost, it is going to be a quite a challenge for them to actually bring it back,” ABS-CBN News reported Megaworld Corp. senior vice president Kevin Tan, as saying.
SOURCE: International Business Times