By James A. Loyola
Top urban township developer Megaworld Corporation is undertaking a massive P300 billion, 5-year investment program to expand its township and integrated lifestyle developments across the country.
In a press briefing after the firm’s annual stockholders’ meeting, Megaworld Chief Strategy Officer Kevin L. Tan said the capital expenditure (capex) budget for 2020 to 2024 will fuel the growth of their pipeline of residential, office, commercial retail, and hotel developments, as well as possible land acquisition opportunities.
Out of the P300-billion budget, Megaworld will allocate 65 percent or approximately P195 billion for its residential developments and investment properties, which mostly consist of 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.
For the period 2014 to 2019, Megaworld had allocated P285 billion for its 5-year capex program, most of which have been utilized 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,” explained Tan.
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,” adds Tan.
Around 3,000 hectares of land is covered by the company’s township developments in Luzon, mostly in the CALABARZON area.
In Metro Manila, Megaworld has a total key land holdings of almost 300 hectares, with significant presence in Makati, Fort Bonifacio, Quezon City, and even in the bustling Manila Bay Area, particularly within the Entertainment City where the company is currently the largest land owner and developer.
Megaworld’s townships, likewise, covers 600 hectares of land in Visayas and Mindanao, with key presence in Iloilo, Bacolod, Boracay, Cebu and Davao.
During the past 30 years, Megaworld has already built around 700 residential developments, 1.6-million square meters of leasable spaces under both Megaworld Premier Offices and Megaworld Lifestyle Malls, and over 3,000 room keys across its hospitality developments under Megaworld Hotels.
“As we celebrate our 30th year in the industry, we see our company doing more than just business. We are rooted by our vision to uplift lives of more Filipinos, impact our society, and help shape our country,” said Tan.