Megaworld Corp., the property unit of billionaire Andrew Tan, is returning to the debt market for the first time in five years.
Megaworld said in a disclosure to the stock exchange it tapped J.P. Morgan as the sole book runner to arrange a series of fixed income investor meetings in Singapore and Hong Kong starting today.
“A proposed Regulation S USD denominated securities offering may follow, subject to market conditions. The securities, if issued, are expected to be unrated and will be issued by Megaworld Corp.,” the property company said.
No further details on the debt securities.
The last time Megaworld issued debt notes was in 2013 when it raised $250 million in 10-year US dollar-denominated fixed rate notes that will mature in 2023.
Megaworld has earmarked P60 billion in capital expenditures this year, with 80 percent set aside for the construction of mostly residential, office and commercial developments in several townships across the country.
The company is allotting the balance for land acquisition and other investment properties.
Megaworld reported a 12.7-percent increase in 2017 net income to P12.8 billion from P11.3 billion a year ago, fueled by the positive performance of its residential, office and commercial leasing businesses.
Consolidated revenues rose 7.7 percent to P50.4 billion from the previous year’s P46.8 billion.
Residential sales, which accounted for 70 percent of the group’s total revenues, expanded 4.5 percent to P11.8 billion from P10 billion a year ago.
Rental business, which covers both office and commercial space leasing, meanwhile, grew at a faster rate of 18.2 percent to P11.8 billion in 2017 from P10 billion in the previous year.
Megaworld plans to increase rental income to P20 billion by 2020 as it adds close to 1 million square meters of leasable space in its portfolio.
Megaworld in 2017 launched two integrated township developments—the 300-hectare Hamptons Caliraya, in Cavinti, Laguna and the 35- hectare Maple Grove Commercial District in General Trias Cavite.
Megaworld to date has built over 660 residential developments, 54 office towers and 15 lifestyle malls in 23 master-planned townships and integrated lifestyle communities across the Philippines.
