Megaworld Corp. of tycoon Andrew Tan said it will spend P55 billion in 2016 to build more office and shopping malls to boost its rental portfolio.
Megaworld’s programmed spending this year includes the investment requirement of other subsidiaries, namely Global-Estate Resorts Inc., Empire East Holdings Inc. and Suntrust Properties Inc..
Megaworld plans to spend at least 75 percent of the P55-billion capex for the construction of new malls, commercial centers, office buildings and residential projects in townships.
The balance will be spent for land acquisition and investment in properties.
Megaworld senior vice president Jericho Go said the property firm would start developing new townships in Pasig City, Bacolod City and Pampanga province. It will accelerate office and mall developments across existing townships.
“We are bullish on the office and retail sectors because we see a remarkable growth in these businesses,” Go said in a statement to the stock exchange.
The group is set to launch 14 office towers, malls and commercial centers in McKinley West, Uptown Bonifacio, The Mactan Newtown, Iloilo Business Park, Arcovia City, Southwoods City, The Mactan Newtown and Alabang.
“We will certainly achieve the P11-billion rental revenue target by year-end,” Go said.
The company is to launch 14 residential projects in Metro Manila, Pampanga, Iloilo, Tagaytay, Cavite, Davao, Baguio and Batangas this year.
The Megaworld Group in 2015 completed 16 residential projects and six BPO office towers with retail components across the integrated urban townships.
Megaworld currently has 20 integrated urban townships across the country, with total land bank totaling over 4,000 hectares across the country.
“Several townships are already mature, which means, we have already built in them the substantial components of a complete ‘live-work-play’ community, such as Eastwood City and McKinley Hill. We are moving towards making our other townships mature as well, especially those outside of Metro Manila,” Go said.
Megaworld owns 100-percent of Suntrust Properties Inc., 82 percent of Global-Estate Resorts and 82 percent of Empire East Holdings Inc. It has already built over 350 residential, office and commercial towers across the country.
Megaworld last year said it would spend P30 billion to develop a 35.6-hectare prime land beside the provincial capitol of San Fernando, Pampanga over the next 10 years.
“As part of our aggressive township expansion across the country, we are happy to announce our entry into Pampanga. This is the perfect time and opportunity to be present in this progressive province, where else but right at the heart of the provincial capital which is a prime location for an urban township development,” Go earlier said.
The first mixed-use development of Megaworld in Central Luzon, the project will adopt the live-work-play concept that the property company has been doing in the past few years.