Posted on July 04, 2014 08:05:25 PM [ BusinessWorld Online ]
A NEWLY acquired subsidiary of Megaworld Corp., the flagship unit of property developer Andrew L. Tan’s Alliance Global Group, Inc., is looking at P2 billion in potential sales from its subdivision in Southwoods City, amid high demand for residential lots.
In a statement, Megaworld said the fast take-up of lots in Pahara -- the residential village inside the 561-hectare township adjoining parts of Cavite and Laguna -- had pushed them to launch the project’s second and third phases six months ahead of schedule.
An external public relations officer said in a phone interview on Friday that the second and third phases of the firm’s largest township were launched in March and May, respectively.
Currently, the whole village is already 75% sold. It is being developed by Global Estate Resorts, Inc. (GERI), Megaworld’s newly acquired tourism estate company.
"The great location of Southwoods City is one of the primary reasons that our buyers would tell us why they prefer to purchase residential lots at Pahara," Megaworld Global-Estate, Inc. Vice-President for Sales and Marketing Rachelle Peñaflorida was quoted in the statement as saying.
GERI is set to invest P10 billion for the development of Southwoods City into a business and leisure complex that will feature a cyberpark, hotel and resort, commercial and retail hubs, environment-friendly office towers, residential condominiums, and sports and leisure facilities.
For its part, Megaworld will lend its "sustainable blueprint" in the design, conceptualization, and master planning of the township. It will also manage the office towers and commercial components of the township’s cyberpark area.
Southwoods City will have its own lifestyle mall, Southwoods Mall, with a supermarket, cinemas, dining and specialty shops. It has close to seven hectares of leasable space that will begin operations by the fourth quarter of 2016, providing the company with a "bigger base" of recurring income.
On June 20, Megaworld completed its purchase of Mr. Tan’s Alliance Global Group, Inc.’s 49.20% stake in GERI, increasing to 80.4% its total stake in GERI.
Formerly Fil-Estate Land, Inc., GERI’s diversified portfolio of integrated projects includes residential subdivision lots, residential communities integrated with golf, resort and other leisure-related projects, business park and low cost housing.
Its subsidiaries are Fil-Estate Properties, Inc., Fil-Estate Golf and Development, Inc., Fil-Estate Urban Development Corp., Novo Sierra Holdings Corp., Twin Lakes Corp., Megaworld Global-Estate, Inc. (MGEI); and Oceanfront Properties, Inc.
GERI also owns 20% of four marketing companies: Fil-Estate Realty Corp., Fil-Estate Network, Inc., Fil-Estate Sales, Inc., and Fil-Estate Realty Sales Associates, Inc., which used to market GERI’s old projects before MGEI was formed.
GERI’s first quarter net income rose 26.78% to P102.64 million, as gross revenue similarly soared 46.12% to P639.9 million. Costs and expenses increased 52.35% to P493.61 million.
GERI’s shares gained six centavos or 3% to end at P2.06 apiece on Friday trading.
Shares in its parent firm Megaworld added eight centavos or 1.78% to close at P4.58 from P4.50 on Thursday. -- Daphne J. Magturo