Megaworld expands Mactan Newtown project in Cebu

MANILA, Philippines - Megaworld Corp., the flagship firm of property tycoon Andrew L. Tan, is scaling up its township project in Lapu-Lapu, Cebu with the development of a new beachfront property.

In a disclosure to the stock exchange, Megaworld said the Mactan Newtown project will be expanded to 28.8 hectares from 16.8 hectares.

The listed firm will develop an 11.5-hectare beachfront property formerly known as Portofino Beach Resort through a joint venture with landowner Landmark Inc.

“The expansion will allow us to provide more enhanced features aligned towards resort-style living, perfect for active retirees and investors,” said Noli D. Hernandez, president of Megaworld Cebu Properties Inc.

“With the acquisition of the property, Mactan Newtown further establishes its stance as a major tourism hub in Mactan Island,” the company said, adding that it is committed to help rehabilitate the famous historical landmark and its surroundings following the destructive earthquake in October.

Megaworld also recently acquired a half-hectare property in front of tourist spot Mactan Shrine.

“This will be connected to our proposed Punta Engaño entrance, which the company intends to be one of the main access points to the township,” Megaworld said.

Early last year, Megaworld doubled its investment commitment for its first township project in Cebu to P20 billion in the next seven years for the 16-hectare development.

The Mactan Newtown is seen as a driver for the economic growth of Cebu due to more job generation and business opportunities.

The listed property firm aims to create a unique township not only for future residents but also for the business process outsourcing workers, office and commercial tenants, students and visitors.

“It is going to be an exciting year for The Mactan Newtown. We are overwhelmed by the favorable response of Cebuanos and investors to our residential projects as well as to our office towers,” Hernandez said.

Construction of the first residential condominium cluster, the 8 Newtown Boulevard, will be completed next year. The second office tower, Two World Center, is expected to be completed by the second half this year.

Last year, the company partnered with the La Sallian Schools Supervision Office to construct a school within the township project.

The Mactan Newtown is Megaworld’s first masterplanned mixed-use development in Central Visayas. Aside from residential condominiums, the township will also include office towers, retail and commercial strips, malls, a hotel as well as leisure and entertainment amenities.

In January to September 2013, Megaworld’s net income reached P6.55 billion up 15 percent from P5.7 billion a year earlier due to growing sales from several township projects and revenues from office buildings.

Megaworld is the property arm of Tan’s Alliance Global Group Inc., which is also into liquor (Emperador Distillers Inc.), fastfood (McDonald’s franchise operator Golden Arches Development Corp.) and hotels and casino (Travellers International Hotel Group Inc.).