Condominium and officer developer Megaworld Corp. said Wednesday it will spend P60 billion in capital expenditures for 2017 to accelerate developments of existing integrated townships and to acquire more properties for landbank.
Megaworld said in a disclosure to the stock exchange the group together with subsidiaries Empire East Holdings Inc., Global-Estate Resorts Inc. and Suntrust Properties Inc. would allot 80 percent of P60 billion to build new residential condominiums, office towers, commercial centers and hotels.
The remaining 20 percent will be used for land acquisition and investment properties.
Funding for this year’s spending program will be sourced from internally generated funds and a planned bond offering.
“Since our company’s cash position remains healthy, we will mostly utilize internally-generated funds to finance our capital spending for the year, and we will also tap the debt market through the proceeds of the first tranche of our P30-billion retail bond program,” Megaworld treasurer Francis Canuto said.
Megaworld said it planned 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.
The group also 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 Town in the City of San Fernando, 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.
Megaworld said for the office sector, it intended to add seven new office towers in Iloilo Business Park, Newport City, Eastwood City, Southwoods City and Las Piñas City and six 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 allowed the company to grow its office and commercial leasing businesses to ensure a stable recurring income base.
Megaworld is the country’s largest developer of integrated urban townships. It owns 100 percent of Suntrust, 82 percent of Geri and 82 percent of Empire East.
