Megaworld to spend Php60 B, mostly for project expansion in 2017

MANILA- The Megaworld Group of billionaire Andrew Tan is earmarking Php60 billion in capital expenditures (capex) this year, mostly for accelerating and expanding projects in various townships across the country.

Megaworld, along with its subsidiary brands Empire East Holdings, Inc., Global-Estate Resorts, Inc. (GERI) and Suntrust Properties, Inc., has set 80 percent of the capital spending for expansion, particularly on the construction of new residential condominiums, office towers, commercial centers and hotels.

The remaining 20 percent will be used for land acquisition and investment properties.

"Since our company's cash position remains healthy, we will mostly utilize internally-generated funds to finance our capital spending for the year, and we will also tap the debt market through the proceeds of the first tranche of our Php30-billion retail bond program," said Megaworld treasurer Francis Canuto.

This year, the Megaworld Group is set to fast-track most of its developments in existing townships, particularly in McKinley West, Uptown Bonifacio, Davao Park District, Iloilo Business Park, Boracay Newcoast, Twin Lakes and Alabang West.

The group is set to launch 20 residential projects with a combined sales value of Php31.2 billion in Fort Bonifacio; Iloilo City; City of San Fernando, Pampanga; General Trias, Cavite; Antipolo, Rizal; Boracay Island; and near Tagaytay.

"While we expand our existing residential properties and introduce more residential products in our townships this year, we continue to focus on our goal towards doubling our rental revenues by 2020. The country's sound business climate allows us to further grow our office and commercial leasing businesses towards a strong and stable recurring income base," explained Canuto.

Megaworld is the country's largest developer of integrated urban townships.

It is one of the biggest property developers in the Makati Central Business District, the country's premier financial center, with a total of 27 residential and office towers built today.

Megaworld owns 100 percent of Suntrust Properties, Inc., 82 percent of GERI and 82 percent of Empire East Holdings, Inc.

It has already built over 350 residential, office, commercial and hotel towers across the country. (PNA)

Source: Philippines News Agency

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