LAPU-LAPU CITY, Cebu – Megaworld Corp. said Wednesday it expects rental revenues from provincial developments to corner 30 percent of total sales by 2021, driven by townships in Cebu, Iloilo, Davao and Bacolod.
“In 2021, as we continue to have this trajectory not only in Cebu but other provincial locations, we feel that the number will improve in terms of provincial share of our rental revenue. It would improve slightly maybe 20 to 30 percent from 10 to 20 percent,” Megaworld senior vice president Jericho Go told reporters.
Go said the growth in rental revenue would be driven by the P30-billion Mactan Newton in Cebu, the P35-billion Iloilo Business Park, the P15-billion Davao Park District and the P35-billion township projects in Bacolod.
“These are the provincial locations that will contribute to the growth of our rental income,” he said.
Megaworld’s leasing business became fastest growing segment in 2015, as rental income grew 23.46 percent. Rental income from malls, commercial centers and offices reached P8.73 billion in 2015, up from P7.07 billion in 2014.
“For this year, we are on track to meet our rental revenue target of P11 billion,” Go said.
Go said Metro Manila development remained the largest contributor to total rental income.
“Our rental income is largely driven by our presence in Metro Manila up to 80 percent to 90 percent. There’s a lot of growth potential there,” he said.
Go also announced that US-based Concentrix was set to open business process outsourcing operations at Megaworld’s The Mactan Newtown in Lapu-Lapu City by the second half.
Concentrix will initially occupy around 2,600 square meters of office space on the entire second floor of Tower 3 of 8 Newtown Boulevard. It will be the fourth BPO company to open its Cebu operations in the 30-hectare urban township development that boasts of its own beachfront, following the entry of The Results Companies, Enfra USA and Manulife.
“The entry of Concentrix in Cebu, through The Mactan Newtown, is a clear indication of our continuing commitment to build the largest cyberpark in Mactan and to further strengthen Cebu’s position as the country’s top BPO hub,” Go said.
David Brooks, Concentrix country leader for the Philippines, said the operations in Cebu would have 450 to 500 initial seats.
“Over the years, our operation wold grow dramatically,” he said.
Concentrix has over 20,000 seats in the Philippines.
The mixed-use cluster of 8 Newtown Boulevard boasts of four office towers with total leasable space of 25,400 square meters. Each tower has three floors of office space while the ground floor will be leased for commercial and retail purposes.
The three levels of Tower 1 are now occupied by The Results Companies, which expanded its operations from One World Center this year.
“The existing BPO companies in The Mactan Newtown have been ecstatic about the future of the township especially after we revealed our plans for the beachfront and the Mactan Shrine area. Where else in the country can you find a workplace that is just a few steps away from the beach,” Go said.
Megaworld is now building an interim beachfront pavilion to primarily cater to the BPO companies that need venues for team-building activities and events.