Megawide Construction Corp. said the Parañaque Integrated Transport Exchange is expected to contribute P717.2 million in leasing revenues to the company next year.
Megawide during a recent investors briefing said leasing revenues from PITx would reach P717.2 million in 2019 and increase to P1.13 billion in 2020 and P1.28 billion in 2021.
PITx, a 4.6-hectare integrated bus terminal project, is slated for completion by the second half of 2018.
The project, previously called Southwest Integrated Transport System, will connect passengers coming from the Cavite side to other transport systems such as the future LRT Line 1 South Extension, city bus, taxi, and other public utility vehicles that are serving inner Metro Manila.
The project will include passenger terminal buildings, arrival and departure bays, public information systems, ticketing and baggage handling facilities, and park-ride facilities.
Once fully operational, the PITX will be capable of serving 200,000 passengers on a daily basis. It can also do commercial development and collect revenues generated from it.
Megawide owns 100 percent of PITx after buying out MW Property Management Inc.’s stake in the company for P344.1 million early this month.
“Megawide decided to acquire the said shares because it sees the potential in the transportation infrastructure industry and believes that the Parañaque Integrated Terminal Exchange project is consistent with its philosophy of Engineering a First World Philippines. Further, all the profit from the PITx will accrue in favor of Megawide,” the company said.
Megawide ventured into transport infrastructure as part of a diversification plan. It move will also increase in the company’s recurring income base.
Megawide posted a net income P1.26 billion in the first half of the year, up 10 percent from P1.15 billion year-on-year.
The increase was driven by the continued robust growth of the company’s airport business segment, which contributed 65 percent to consolidated net earnings.
The construction business segment accounted for 35 percent.
Share price of Megawide on Friday fell 1.1 percent to P18.10.