Megaworld sets aside P65 billion for project spending in 2019

MANILA, Philippines — Megaworld Corp., the Andrew Tan-owned property developer, is setting aside P65 billion for capital spending this year as it continues to expand on the back of steady demand for residential, office and mall spaces.

Kevin, Tan’s eldest son and the company’s executive vice president and chief strategy officer, said demand for residential projects is growing both in and outside Metro Manila.

The capex will be used mainly for three segments  – residential, office and malls – across its different township developments.

A significant portion will also be used for land acquisition.

“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,” Tan said.

He said this year’s spending would also enable the company to meet its goal of hitting P20 billion in rental revenues.

“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,” Tan said.

Megaworld is set to launch 28 new residential towers this year in its townships in key regional centers.

In Metro Manila, new launches will be in Westside City in Parañaque City, McKinley Hill and McKinley West in Fort Bonifacio, Arcovia City in Pasig City and Manhattan Garden City in Quezon City.

Tan said the projects would generate around P90 billion in residential sales for the company.

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.

Megaworld is also expected to start the construction of five new office towers in Uptown Bonifacio, Capital Town in San Fernando, Pampanga, and Westside City in Parañaque City. The towers cover around 116,000 square meters in gross leasable spaces.

Another five new office towers are targeted to be completed within the year in Uptown Bonifacio, Iloilo Business Park, Arcovia City and Pampanga, with total gross leasable area of around 189,000 square meters.

Five commercial properties, on the other hand, 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 square meters of gross leasable spaces in our commercial retail portfolio.

By end-2019, Megaworld’s leasable properties will climb to 2.14 million square meters, with office properties accounting for almost 60 percent, Tan said.

This year, the company will mark its 30th anniversary as a major developer in the country

Megaworld has 23 integrated urban townships across the Philippines composed of around 700 residential towers, 60 office towers, 17 lifestyle malls, and nine hotels in over 4,000 hectares of land across Luzon, Visayas and Mindanao.