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Megaworld units post drop in 2011 housing revenues

Posted on February 15, 2012 10:13:41 PM [ BusinessWorld Online ]

THE MEGAWORLD group of companies posted lower revenues from housing unit sales in 2011, a disclosure to the Philippine Stock Exchange showed yesterday.

The group sold P37.1-billion worth of residential properties, down 25.32% from the P49.68 billion sales the group -- composed of Megaworld Corp., Empire East Land Holdings, Inc. and Suntrust Properties, Inc. -- booked in 2010.

The group sold 10,451 residential units last year, equivalent to a total saleable area of 400,000 square meters (sq. m.) for the year, and reportedly 35% higher than its nearest competitor.

Megaworld recently claimed the lead in the number of units set for completion in the next four years, with a December 2011 report by property consultancy Colliers International Philippines projecting 1.15 million sq. m. of total aggregate saleable area coming from Megaworld by 2016.

For 2012, 11 residential projects are set to be launched within the first semester, possibly in Metro Manila and Cebu, Megaworld said last month.

Since its founding in 1989, Megaworld has claimed to have launched more than 225 residential and office buildings completed with a total floor area of around 5.5 million sq. m.

Megaworld is also looking to firming up its presence in central Luzon.

Last November, the company forged a P7-billion deal with state-run Clark Development Corp. to develop portions of the Clark Freeport Zone and Clark Special Economic Zone in Pampanga province into mixed-use projects.

The developer also penetrated the Cebu property market via residential development 8 Newton Boulevard, which was launched last year.

Megaworld is currently developing over 40 residential and business process outsourcing (BPO) office projects in Metro Manila, where the company launched eight new projects.

Megaworld increased its net income from January to September last year to a record P4.08 billion, up 36% year on year, on the back of continued strong residential real estate sales and BPO office rental income.

Profits in the third quarter alone, however, declined by 19% to P1.539 billion from P1.903 billion in 2010.

Megaworld shares were up by 0.59% to P1.71 yesterday from P1.70 at its previous close. -- Franz Jonathan G. de la Fuente

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