Megaworld to beef up leasing portfolio with REIT proceeds

Published June 18, 2021, 3:26 PM

by James A. Loyola

Megaworld Corporation, the country’s top township developer, is investing the proceeds from its P27 billion real estate investment trust offering to complete 21 new office and commercial projects across 11 townships in the country over the next five years.

Ongoing developments inside the 34-hectare The Upper East township in Bacolod City where Megaworld plans to build more office towers, malls, and residential towers in the next 5 years

These projects include 15 office developments in Taguig, Pasig, Iloilo, Bacolod, Pampanga, Cebu, and Davao; five lifestyle malls in Bacolod, Pampanga, Cavite, and Rizal; and one hotel in The Mactan Newtown.

“These are all big-ticket projects that we want to pursue as we look forward to full recovery in our economy, and the return of consumer confidence to normalcy,” said Megaworld Chief Strategy Officer Kevin L. Tan.

He added that, “All of these new developments will spruce up our new townships, and at the same time, further expand our rental income portfolio. More than 70 percent of these new projects are office developments.”

During the company’s Annual Stockholders’ Meeting, Megaworld Chairman and CEO Dr. Andrew L. Tan expressed optimism that the pandemic has strengthened Megaworld’s resolve to further grow its development portfolio by tapping opportunities on new consumer demands.

“Megaworld looks forward to a better 2021. With the start of the country’s vaccination program, we believe that it is only a matter of time before consumer confidence rebounds. Additionally, the fundamental demand for decent housing remains high,” he said.

Dr. Tan noted that, “We have numerous opportunities to explore in our growth pipeline, and we are prepared to take them on. We foresee continued robust demand for horizontal developments, and leisure and tourism estates, as people look for havens for rest and rejuvenation.”

He added that, “Demand for warehouses and logistics hubs should also increase, and we believe that our townships can easily cater to this need given their strategic locations.”

The company is also ramping up its construction activities as it remains on track to complete 19 projects across its business segments this year.