MEGAWORLD Corp. will start the development of its P35-billion worth of two townships in Bacolod City this year, which form part of the company’s 2016 allocation of P55 billion in capital expenditures (capex) for the expansion of its rental portfolio, particularly mall and office businesses.
On March 2015, Megaworld unveiled the development plan of its first luxury village in the Visayas and Mindanao on a 53-hectare Northhill Gateway township situated along Bacolod-Silay Airport Access Road.
The project called Forbes Hill is a 15-hectare upscale residential village that will soon rise on a prime portion of the township’s Bacolod side.
It had also announced its 34-hectare mix-use development project called Upper East located at the eastern side of the city that used to be the Bacolod-Murcia Milling Company.
Aside from Bacolod, the property firm is also set to begin its development for new townships in Pasig City and Pampanga, both in Luzon.
“This year, we will start developing these townships while we ramp up our office and mall developments across our existing townships,” Megaworld senior vice president Jericho Go said in a press release.
“We are bullish on the office and retail sectors because we see a remarkable growth in these businesses,” he added.
Of the P55-billion capital spending for this year, Megaworld, along with its subsidiary brands Global-Estate Resorts Inc., Empire East Holdings Inc., and Suntrust Properties Inc., allocates 75 percent for development projects, particularly on the construction of new malls, commercial centers, office buildings, and residential projects in townships.
The remaining 25 percent will be used for land acquisition and investment properties, the press release said.
It is also set to launch 14 residential projects in Metro Manila, Pampanga, Iloilo, Tagaytay, Cavite, Davao, Baguio, and Batangas this year, on top of another 14 office towers, malls and commercial centers in McKinley West and Uptown Bonifacio in Taguig City, The Mactan Newtown in Cebu, Iloilo Business Park, Arcovia City in Pasig City, Southwoods City at the boundaries of Cavite and Laguna, and Alabang in Muntinlupa City.
“We will certainly achieve the P11-billion rental revenue target by year-end,” Go said.
In 2015, Megaworld has completed 16 residential projects and six business processing outsourcing (BPO) office towers with retail components across its integrated urban townships.
Currently, it is the master developer of 20 integrated urban townships across the country and its total land bank spans over 4,000 hectares nationwide. Of which, 11 townships are in the regions, and nine others are in Metro Manila.
“Several townships already have substantial components of a complete live-work-play community thus, we are moving towards making our other townships mature as well, especially those outside of Metro Manila,” Go added.