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Friday, March 29, 2024

Megaworld allots P300b for capital expenditures

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Megaworld Corp. of tycoon Andrew Tan has earmarked P300 billion in capital expenditures from 2020 to 2024 to significantly increase its residential, office, malls and hotels portfolio through the development of mixed-use township projects across the country.

Megaworld chief strategy officer Kevin Tan said in an interview following the annual stockholders’ meeting the company would allot 65 percent, or P195 billion, for residential developments and investment properties, which mostly account for Megaworld Premier Offices, Megaworld Lifestyle Malls and Megaworld Hotels. 

Megaworld is spending the balance or around P105 billion to finance land acquisitions and land banking.

Megaworld allots P300b for capital expenditures
Megaworld Corp., the biggest lessor of office spaces, is spending P300 billion from 2020 to 2024 to fuel the company’s upcoming projects under its residential, office, commercial, and hotel portfolio. Attending the annual stockholders’ meeting of the company at Eastwood City in Quezon City are (from left) Anna Michelle Llovido, corporate secretary; Crescencio Aquino, director; Jesus Varela, director; Kingson  Sian, director; Dr. Andrew Tan, chairman and president; Enrique Santos Sy, director; Katherine Tan, director; and Roberto Guevara, director.

“The new five-year capital spending plan will significantly increase our residential, hotels, office and malls portfolio as we are quite aggressive on our expansion given that we are bullish on the Philippine economy,” Tan said.

Megaworld earlier said it aimed to build two million square meters of rental space and 5,000 hotel rooms by 2020.

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Megaworld allocated P285 billion for its five-year capex program from 2014 to 2019, most of which have been utilized mostly for property and township developments.

“Megaworld has secured significant coverage of raw land in the areas where we want to be in. Our focus now is on developing the land in order to sustain and further propel our strong earnings moving forward,” Tan said.

Megaworld has approximately 4,700 hectares of land bank in the portfolio, which is expected to expand by almost 45 percent with the launch of six more townships and integrated lifestyle communities by next year. 

“Our existing land bank would be sufficient for the next 10 to 15 years of development,” said Tan.

About 3,000 hectares of Megaworld’s township development are in Luzon, mostly in the Calabarzon area. 

Megaworld also has land holdings of almost 300 hectares in Metro Manila, with significant presence in Makati, Fort Bonifacio, Quezon City, and even in the bustling Manila Bay Area, particularly within the Entertainment City where the company is currently the largest land owner and developer.  

Megaworld has 600 hectares of land in Visayas and Mindanao, with key presence in Iloilo, Bacolod, Boracay, Cebu and Davao.

Megaworld has built around 700 residential developments, 1.6-million square meters of leasable spaces under both Megaworld Premier Offices and Megaworld Lifestyle Malls, and over 3,000 room keys across its hospitality developments under Megaworld Hotels in the past 30 years, .  

“As we celebrate our 30th year in the industry, we see our company doing more than just a business. We are rooted by our vision to uplift lives of more Filipinos, impact our society, and help shape our country,” Tan said.

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