Property developer Megaworld Corp. said it earmarked P55 billion in 2023 capital expenditures, up 19.5 percent from P46 billion last year, on continued improvement in real estate and rental revenues.
Megaworld said in a recent analysts briefing it planned to launch P60 billion worth of projects and three township developments this year.
It also targets P130 billion in reservation sales this year, up 9.2 percent from P119 billion it booked in 2022.
Megaworld said that aside from renewed demand for residential units, it also expected the office sector to sustain its growth momentum amid stable occupancy and continued rent escalations.
Megaworld’s office segment has 207,200 square meters of gross leasable area in the pipeline that will be completed between 2023 and 2026. This year, the company expects to have additional 8,600 sq. m. with the opening of No. 1 Upper East in Bacolod City.
The property firm also expects mall rent to exceed pre-pandemic revenues on the back of higher occupancy and full rent collection.
It has a mall pipeline of 159,500 sq. m. that will be completed from 2023 to 2026. It is set to complete this year 5,400 sq. m. of retail space at D’ Olive in Antipolo and 3,000 sq. m. at Davao Whiskey Park in Davao City.
Megaworld said its hotel business was expected to sustain its growth with improving outlook for leisure and travel. Megaworld said its hotel business in 2022 already exceeded pre-pandemic levels.
The company said that from 2023 to 2028, it planned to add 3,159 room keys in its portfolio from the five projects in the pipeline.
Megaworld will complete the 554-room Chancellor Hotel in Boracay and the 1,530-room Grand Westide Hotel in Paranaque City this year.
Megaworld reported a net income of P13.4 billion in 2022.