Megaworld increases capital expenditures for 2017
MANILA, Philippines – Condominium and office developer Megaworld group will spend P60 billion in 2017 to boost developments within its existing integrated township projects and to acquire more properties for future use.
This is higher than its capital expenditures for 2016 and 2015, which were both at P55 billion.
"Since our company's cash position remains healthy, we will mostly utilize internally-generated funds to finance our capital spending for the year," Megaworld treasurer Francis Canuto said in a statement.
The Andrew Tan-led Megaworld, together with its subsidiaries Empire East Holdings Incorporated, Global-Estate Resorts Incorporated (GERI), and Suntrust Properties Incorporated, will earmark 80% of the P60 billion for new residential condominiums, office towers, commercial centers, and hotels.
The remaining 20% will be used for land acquisition and investment properties. (READ: Megaworld to build more malls, office buildings in PH)
"[W]e will also tap the debt market through the proceeds of the first tranche of our P30-billion retail bond program," Canuto added.
Megaworld said it plans 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.
For its residential business, the group plans to launch 20 residential projects this year, with total sales value of P31.2 billion.
These are located in Uptown Bonifacio, McKinley West and McKinley Hill, all in Fort Bonifacio; Iloilo Business Park in Mandurriao, Iloilo City; The Capital in the City of San Fernando in Pampanga; Maple Grove in General Trias, Cavite; Eastland Heights in Antipolo, Rizal; Boracay Newcoast in Boracay Island; Sta Barbara Heights in Iloilo; and Twin Lakes near Tagaytay.
For its office sector, Megaworld intends to add 7 new office towers in Iloilo Business Park, Newport City, Eastwood City, Southwoods City, and Las Piñas City.
It is also looking at adding 6 new lifestyle malls and commercial centers in McKinley West, Boracay Newcoast, Iloilo Business Park, Las Piñas City and Makati City.
"While we expand our existing residential properties and introduce more residential products in our townships this year, we continue to focus on our goal towards doubling our rental revenues by 2020," Canuto said.
Canuto said the country's sound business climate allows the company to grow its office and commercial leasing businesses that will ensure a stable recurring income base.
Megaworld is the Philippines' largest developer of integrated urban townships. It owns 100% of Suntrust, 82% of GERI, and 82% of Empire East. – Rappler.com