Posted on April 10, 2016
08:45:00 PM [ bworldonline.com ]
MEGAWORLD CORP. is boosting
its retail footprint that will take advantage of the strong demand for office
space within its townships across the country, while brushing aside concerns of
a slowdown in the residential sector.
The property conglomerate
of billionaire Andrew L. Tan will launch an average of 60,000 to 70,000 square
meters (sqm) of retail space every year until 2019, Megaword Senior
Vice-President Jericho S. Go told reporters last week.
By 2020, Megaword’s
lifestyle malls will have a total gross floor area of 1.4 million sqm with
their contribution to rental income seen increasing to as much as 50%.
Megaword’s retail projects
draw its strength from the office buildings serving business process
outsourcing companies within its townships, Mr. Go said. The real estate
developer is bringing to the market at least 100,000 sqm of office space every
year until 2019.
“We are on track, if not
ahead, in terms of meeting those targets,” Mr. Go said.
For the residential sector,
Mr. Go said sales this year have been “encouraging,” tracking “what we had in
the past two years” despite coming from a high base.
“It is an election year.
Even for those that have the money to purchase, they are on wait-and-see mode,
but that doesn’t mean there is a slowdown. They are just waiting for the proper
timing,” Mr. Go said.
The sweet spot for
Megaworld continues to be the middle-income segment or projects ranging from P3
million to P7 million per unit.
“That’s where the money is.
That is where the purchasing power is,” Mr. Go said.
Megaworld’s bottomline was
halved to P10.57 billion last year from the previous year’s P21.55 billion which
included a P12.16-billion nonrecurring gain. Excluding the one-time gain, the
company’s core net income climbed 11% to P10.4 billion last year.
Megaworld is part of
Alliance Global Group, Inc. -- the holding firm for Mr. Tan’s liquor, gaming
and quick-service restaurant businesses.
Shares in Megaworld slid
four centavos or 1% to end at P3.95 each on Friday. -- Krista Angela M.
Montealegre
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