Posted on March 07, 2016
08:25:00 PM [ bworldonline.com ]
By Krista A. M.
Montealegre, Senior Reporter
THE MEGAWORLD Group of
billionaire Andrew L. Tan is keeping its planned capital expenditure (capex)
budget steady this year, as the property developer builds up its recurring
portfolio across its integrated urban townships.
ANDREW L. TAN -- BW FILE
PHOTO
Megaworld Corp. told the
stock exchange yesterday the group set its capital spending program at P55
billion this year, 75% of which will be used to develop its malls, commercial
centers, office towers and residential buildings. The remaining 25% will be
allocated for land acquisition and investment properties.
Megaword said the capex
budget is the same as the amount spent last year across the group, including
Empire East Land Holdings, Inc., Global-Estate Resorts, Inc. (GERI), and
Suntrust Properties, Inc. The group originally earmarked P65 billion last year,
but it did not use the P10 billion allotted to acquire more land.
“This year, we will start
developing our new townships in Pasig City, Bacolod and Pampanga, while we ramp
up our office and mall developments across our existing townships,” Megaword
Senior Vice-President Jericho P. Go was quoted in the statement as saying.
The group has 20 integrated
urban townships, with its total land bank spanning over 4,000 hectares across
the country.
“We are bullish on the
office and retail sectors because we see a remarkable growth in these
businesses,” Mr. Go said.
This year, the group is
rolling out 14 residential projects in Metro Manila, Pampanga, Iloilo, Tagaytay,
Cavite, Davao, Baguio and Batangas.
Another 14 office towers,
malls and commercial centers are set for launch in McKinley West, Uptown
Bonifacio, The Mactan Newtown, Iloilo Business Park, Arcovia City, Southwoods
City, The Mactan Newtown and Alabang.
“We will certainly achieve
the P11-billion rental revenue target by year-end,” Mr. Go said. The goal
represents a growth of more than 20% from a year ago and higher than the
original projection of P10 billion, the developer said in January.
The real estate firm had
said it will complete projects that will add a total gross floor area of more
than 650,000 square meters this year to its portfolio of developments that will
provide the company a steady stream of recurring revenues.
In 2015, the Megaworld Group
completed 16 residential projects and six office towers catering to the
business process outsourcing sector with retail components across its
townships.
Megaworld owns 100% of
Suntrust, 82% of GERI and 82% of Empire East. It is part of Alliance Global
Group, Inc., which is also the holding firm for Mr. Tan’s liquor, gaming and
quick-service restaurant businesses.
Megaworld shares added
three centavos or 0.79% to close at P3.85 each, GERI shares rose four centavos
or 4.17% to P1 apiece and Empire East shares were flat at 83 centavos each.
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