Megaworld hikes 2021 capex to P36 billion

Property developer Megaworld Corp. earmarked P36 billion for 2021 capital expenditures, up 29 percent from P27.9 billion it spent last year.

Megaworld said in a disclosure to the stock exchange Thursday that 76 percent of the programmed capital spending would be allocated for real estate developments, particularly on the construction of new residential properties, while the remaining 24 percent would be for investment properties. No amount was allocated for landbanking initiatives.

The property firm said it realigned some of its project developments given the recent re-imposition of strict quarantine measures that affected construction movements and demand for residential properties especially in Metro Manila.

“We remain cautious and prudent with our spending as we are still observing how the vaccination program will progress and where this pandemic will be leading us in the next few months. This is a very targeted capex program aimed at optimizing the use of our available cash during this time,” Megaworld chief strategy officer Kevin Tan said.

The company plans to launch four residential projects this year, particularly in the townships of Maple Grove in Cavite, Capital Town in Pampanga, Iloilo Business Park in Iloilo City and The Upper East in Bacolod City.

These new residential projects are expected to generate around P8.3 billion in sales.

The company is also slated to turn over nearly 4,000 units and lots from completed residential developments across the country with a total value of P60 billion.

These residential projects for turnover are in Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, Westside City, Capital Town Pampanga, Iloilo Business Park and Makati City.

“We look forward to eased restrictions by second half of the year. It’s still wait and see as of this time, but we are optimistic that the domestic economy will bounce back fast once all of these strict quarantine measures are lifted,” Tan said.

The stock of Megaworld rose 2 percent Thursday to close at P3.06.