Township developer Megaworld Corporation is allocating P36 billion for capital expenditures (capex) this year, 29 percent higher than the P27.9 billion it actually spent in 2021.
In a disclosure to the Philippine Stock Exchange, the firm said it is realigning project developments with the restrictions brought about by the strict quarantine measures that affect construction movements as well as demand for residential properties especially in Metro Manila.
Around 76 percent of this year’s capex will be allocated for real estate developments, particularly the
construction of new residential properties, while the remaining 24 percent will be for investment properties.
“We remain cautious and prudent with our spending as we are still observing how the vaccination program will progress and where this pandemic will be leading us in the next few months,” said Megaworld Chief Strategy Officer Kevin L. Tan.
He noted that, “This is a very targeted CAPEX program aimed at optimizing the use of our available cash during this time.” No amount has been allocated for landbanking initiatives.
This year, the company is launching four residential projects, particularly in its key provincial townships at Maple Grove in Cavite, Capital Town in Pampanga, Iloilo Business Park in Iloilo City, and The Upper East in Bacolod City.
These new residential projects are expected to generate around P8.3 billion in sales.
During the year, the company is also turning over almost 4,000 units and lots from its completed residential developments across the country with a total value of around P60 billion.
These residential projects for turnover are in Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, Westside City, Capital Town Pampanga, Iloilo Business Park, and Makati City.
“We look forward to eased restrictions by second half of the year. It’s still wait and see as of this time, but we are optimistic that the domestic economy will bounce back fast once all of these strict quarantine measures are lifted,” said Tan.