Megaworld allots P300B, 65% goes to residential
PROPERTY giant Megaworld is allocating P300 billion in capital spending from 2020 to 2024 as it expands its township and integrated lifestyle developments across the country.
The new capital expenditure (capex) program will fuel the company’s five-year pipeline of residential, office under its Megaworld Premier offices brand, commercial retail under its Megaworld Lifestyle Mall brand and hotel developments, as well as possible land acquisition opportunities.
Out of the P300 billion capex, Megaworld will allocate 65 percent or approximately P195 billion for its residential developments and investment properties, which mostly account for Megaworld Premier offices, Megaworld Lifestyle malls and Megaworld hotels. The remaining 35 percent or around P105 billion will be set aside for land acquisition and land banking.
During the last five years for the period 2014 to 2019, Megaworld has allocated P285 billion for its five-year capex program, most of which have been utilized mostly for property and township developments.
”Megaworld has secured significant coverage of raw land in the areas where we want to be in. Our focus now is on developing the land in order to sustain and further propel our strong earnings moving forward,” said Kevin Tan, chief strategy officer at Megaworld.
Megaworld has approximately 4,700 hectares of land bank in its portfolio, which is expected to expand by almost 45 percent with the launch of six more townships and integrated lifestyle communities by next year.
“Our existing land bank would be sufficient for the next 10 to 15 years of development,” Tan added.
Around 3,000 hectares of land is covered by the company’s township developments in Luzon, mostly in the Calabarzon area. It’s townships also covers 600 hectares of land in Visayas and Mindanao, with key presence in Iloilo, Bacolod, Boracay, Cebu and Davao.
During the past 30 years, the firm has already built around 700 residential projects, 1.6 million square meters of leasable spaces and over 3,000 rooms across its hospitality business. (PR)