Megaworld increases capital spending for next 5 years

Rappler.com
Megaworld increases capital spending for next 5 years
The Andrew Tan-led property firm hikes its capital expenditure from P230B to P285.80B to build more townships and expand current mixed-use developments

MANILA, Philippines – Megaworld Corporation has raised its 5-year programmed capital spending to P285.80 billion ($6.44 billion) from the initial plan of P230 billion ($5.18 billion) to meet its planned launch of new township projects and expansion of existing mixed-used properties.

“We have adjusted our capital spending to pave the way for the expansion of offerings in our existing townships and for the new additional township projects that we recently announced,” Megaworld Senior Vice President and Corporate Information Officer Francisco Canuto said in a statement.

For 2015 alone, Megaworld is allocating P65 billion ($1.47 billion) for more residential and hotel developments, office buildings, as well as malls and commercial centers inside its integrated urban townships.

A total of 74% of capital spending for the year will be allotted for mostly townships, while 26% will be for land acquisition and property investments.

Launching more projects

The Megaworld Group, which includes subsidiaries Suntrust Properties, Incorporated; Empire East Land Holdings, Incorporated; and Global-Estate Resorts, Incorporated, is eyeing to launch 22 residential projects in Metro Manila, Laguna, Batangas, Boracay, Iloilo, and Bacolod.

The group is also launching 3 hotel towers in Boracay Newcoast; 10 office towers in McKinley West; McKinley Hill; Eastwood City; Woodside City; Davao Park District; and Southwoods City; and 3 malls and commercial centers across its townships all over the country.

For its township developments, Megaworld will launch 5 new developments to add to its existing 15; two of these are in Bacolod, Negros Occidental. These are the 34-hectare lot used to owned be the Bacolod-Murcia Milling Company and the 50-hectare property along the new Circumferential Road on the boundary of Talisay City and Bacolod City.

To date, Megaworld’s existing township developments include 18.5-hectare Eastwood City in Quezon City;  25-hectare Newport City in Pasay City; 50-hectare McKinley Hill; the 35.4-hectare  McKinley West; and the 28.8-hectare Mactan Newtown in Cebu.

Canuto said Megaworld has sufficient land bank and landholdings that will sustain its plans to further expand and grow its townships all over the Philippines.

“While we continue to create and expand our mixed-use communities in Metro Manila, we will also expand our presence in the provinces especially in major growth centers,” Canuto said. – Rappler.com

$1 = P44.35

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