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Megaworld, GSIS defer project

by Jenniffer B. Austria
[ ] November 28,2011

State-run Government Service Insurance System and property developer Megaworld Corp. have deferred plans to put up a P3.5-billion joint mixed-use condominium project within the Cultural Center of the Philippines complex along Roxas Boulevard.

Megaworld executive director and senior vice president Kingson Sian told reporters in an interview both parties were putting the project on hold for undisclosed reasons.

GSIS and Megaworld agreed to build the Palm Bay condominium project, with the pension fund contributing its 7,741-square-meter lot property within the CCP complex in Pasay City as equity. The proposed project, which is adjacent to the Coconut Palace, will feature three 20-storey condominium towers and other facilities.

Megaworld committed to spend for the construction of the condominiums. Each of the three buildings is estimated to have 300 units measuring 43 square meters each.

The units were priced between P95,000 and P120,000 per square meter.

Then GSIS president and general manager Winston Garcia said the pension fund would get 18 percent of the revenues to be generated from the project. The project was originally scheduled for completion by 2014.

Megaworld earlier said it expected 2011 to be a banner year for the company, with projected net income hitting a record P6 billion, up 18 percent from P5.09 billion in 2010, due to robust sales of its mega-communities and the growing strong reservation sales for retail and office space.

Reservation sales are forecast to grow to P44 billion this year while rental income is seen to hit a record P4 billion with the completion of Lucky Chinatown Mall, which will have more than 108,000 square meters of retail space by the end of 2011.

The company will also complete more than 77,000 square meters of new office space, which will cater to the growing demand from business process outsourcing companies.

Share price of Megaworld on Friday closed at P1.78, down P0.22 week-on-week.

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