By James A. Loyola
Top urban township developer Megaworld Corporation and its subsidiaries are aiming to hit P110 billion in reservations sales for its residential projects this year from P105 billion in 2017.
During the firm’s annual stockholders’ meeting, Megaworld Senior Vice President Kevin L. Tan said this target will be supported by their plan to more than double residential project launches to P80 billion in market value from P39 billion last year.
As of end-May, Megaworld and its subsidiaries have already achieved reservation sales for its residential offerings amounting to P73 billion.
The group has seen robust demand in its townships such as Westside City in Pasay City, McKinley West in Taguig City, Maple Grove in General Trias, Cavite, and Iloilo Business Park in Iloilo City, among others.
This year’s record launch of residential projects by Megaworld, which includes subsidiaries Global-Estate Resorts, Inc. (GERI), Empire East Land Holdings, Inc., and Suntrust Properties, Inc., spans across various township developments and key cities all throughout the country.
Approximately 70 percent of this year’s new launches will come from parent company Megaworld, which has earmarked new projects in Pasig City; Pampanga; Iloilo City; Gen. Trias, Cavite; Bacolod; Parañaque City; McKinley West and Uptown Bonifacio in Taguig; as well as in Makati CBD and Manila City.
Global-Estate Resorts, Inc., on the other hand, is set to cover around 15 percent of the new launches in Twin Lakes near Tagaytay; Southwoods City in Biñan, Laguna; and in Ortigas CBD.
Suntrust Properties, Inc. is set to take up the remaining balance through residential launches in Quezon City, Cavite, Davao, Baguio and in Bicol Region.
“This record launch of new residential projects in a year is intended to further boost our aggressive position as the country’s top residential developer,” said Tan.
He added that, “there is no better time to expand our residential offerings across the country but now, when the economy is sound and healthy, and our country is experiencing the infrastructure boom.”
In 2017, Megaworld’s residential business comprised 70 percent of its entire revenue pie, growing around 4.5% to P34.6 billion year-on-year.
This year, Megaworld is expected to spend P60 billion to finance its various development projects including residential developments, as well as for land acquisition and other investment properties.
Tan said they will allocate 20 percent of the capex to land acquisition and the firm is looking at places outside Metro Manila, both north and south, as well as Mindanao “where we see tremendous growth potential.”
Megaworld Executive Director Kingson Sian said this capex is already funded and the firm does not expect to add on much debt although Megaworld has only raised P12 billion from its shelf registration of P30 billion worth of bonds.