Thursday, August 7, 2008 [ philstar.com ]
Megaworld Corp. and its sister companies Empire East Land Holdings Inc. and First Centro Inc. have entered into an agreement with state-run Bases Conversion Development Authority and the National Police Commission to develop office buildings and housing units for the employees of Napolcom and the Department of Interior and Local Government.
Megaworld is an upscale real estate development firm controlled by tycoon Andrew Tan while Empire East serves as his corporate vehicle for low- to medium-cost housing projects. First Centro, on the other hand, is a subsidiary of Alliance Global Inc., the listed investment holding firm of Tan.
In a disclosure to the Philippine Stock Exchange, Megaworld said the office buildings and residential projects will be built on properties located in Quezon Avenue, San Juan and Taguig.
“The joint venture is intended to address the office requirements of Napolcom and the Department of Interior and Local Government (DILG) and the housing needs of their employees and beneficiaries,” Megaworld said.
Analysts said this is a welcome development since these projects would boost Megaworld’s revenue stream.
Unfazed by a slowing economy, buffeted by rising prices of gas and food and weakening consumer and business spending, Megaworld has programmed 17 new residential projects this year with total projected revenues of around P26 billion.
The company remains unshaken in its optimism for the future given the continued strong support from the public for its projects. Sales remain strong with both the domestic and overseas markets continuing to drive growth.
From January to May this year, total reservation sales jumped 70 percent against the same period a year earlier. Direct overseas sales, which account for roughly 10 percent of total residential sales, surged 158 percent year on year.
Sales in Middle East dramatically grew to a 25-percent share in the first five months from a meager one-percent contribution last year. North America, Asia and Europe accounted for 28 percent, 38 percent and nine percent, respectively.
For this year, the company has earmarked between P10 billion and P12 billion for the continued development of residential buildings, townships and office buildings to sustain its growth momentum.
Of the planned 17 new projects, Megaworld has launched three — One Central at the Makati central business district with projected revenues of P5 billion; Parkside Villas at Newport City in Pasay City with estimated revenues of P3 billion; and Morgan Executive Suites at McKinley Hill in Taguig City with revenues seen at P1 billion. — Zinnia Dela Peña
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