By Zinnia B. Dela Peña Updated June 20, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines – Upscale property firm Megaworld Corp. is rolling out five new residential condominium projects this year estimated to generate around P12 billion in sales.
In a briefing with reporters following the company’s annual stockholders meeting yesterday, Megaworld executive director Kingson Sian said management remains upbeat about the growth of the real estate sector in spite of a tough business environment.
To sustain its growth, Megaworld is launching five residential building projects – Two Central (a prestigious high-rise building in Salcedo Village that will make available around 400 units), Tower Three in Eastwood City in Libis, Parkside Villas (a seven-cluster community that will rise beside the five-star Marriott Hotel in Newport City in Pasay), The Venice Residences (a seven-tower residential project in Mckinley Hill in Bonifacio Global City), and Morgan Suites Executive Residences (also within the 50-hectare Mckinley Hill township).
“We’re confident that our products will continue to sell. The growth will be slower than last year but is definitely better than 2007 figures. In general, we’re still happy with the results,” Sian said.
He said 2009 reservation sales can not replicate last year’s level, but will exceed the P5 billion recorded in 2007.
Rental income, on the other hand, is forecast to hit P2 billion this year compared with P1.3 billion in 2008 and P900 million in 2007.
Around 80 percent of the company’s sales come from residential projects while 10-15 percent come from lease operations.
“In 2009 and beyond, we will continue with the strategies that have helped us come this far in the game. For one thing, we will continue focusing on the middle-income and BPO markets, while tapping into the rich tourism sector for additional sources of revenues. We will also continue developing well-planned integrated communities that conform to our tested “live-work-play concept,” said tycoon Andrew Tan, chairman and president of Megaworld.
Sian added the company is allotting P8 billion to P10 billion for its capital expenditures this year, mostly for project development.
Part of the capex will be used to fund the construction of a new Richmonde hotel in Eastwood City. The new four-star hotel will offer up to 150 rooms with the development cost pegged at $70,000 per room. A third branch of the Richmonde Hotel is also being planned in Manila’s Binondo district where Megaworld is building a township called City place.
Sian said the group, through Travellers International Hotel Group, is venturing into the development of budget hotels to cater to a wider clientele base. The first of the several budget hotels planned this year will rise in Newport City, Megaworld’s 25-hectare urban resort complex across the Ninoy Aquino International Airport Terminal 3.
He said Megaworld remains on the lookout for opportunities despite the prevailing global economic slowdown. “We’ve been constantly looking around. We have cash resources we can use especially now that market prices have gone down. This is definitely a good time to seize opportunities that come our way,” Sian said.
Megaworld expects to end the year with a net profit of P4.02 billion on revenues of P17.58 billion.