Megaworld spending P55 billion in property development this year

Township developer Megaworld Corporation is planning to allocate P55 billion for capital expenditures this year, an increase of 10 percent from the P50 billion earmarked for 2022, according to a report by Manila Bulletin.

The company aims to launch three new townships, as well as residential projects, office buildings, malls, and hotels in 2023 with the goal of generating reservation sales of PHP130 billion. This comes as the firm reveals its 2023 outlook.

According to Megaworld’s plans, it will develop 207,200 square meters of gross leasable area (GLA) for its office pipeline over the next four years, with 8,600 sqm to be completed in Bacolod City this year. It also aims to develop other office buildings, including the 69,000 sqm International Finance Center in Taguig, the 66,600 sqm Enterprise 1 and 2 in Iloilo, the 8,600 sqm Pasudeco 1 in Pampanga, and the 54,400 sqm Two McWest in Taguig.

In addition to its office pipeline, Megaworld plans to open five hotels with a total of 3,159 room keys from 2023 to 2028. The Chancellor Hotel in Boracay with 554 rooms and the 1,530-room Grand Westide Hotel in Parañaque will open this year. It will also open the 405-room Belmont Hotel Iloilo in 2026, and for 2028, the 208-room Kingsford Hotel Bacolod and the 462-room Savoy Hotel Palawan.

Moreover, Megaworld will open eight malls with a total GLA of 159,500 sqm over the next four years, with three set to be completed this year in Antipolo, Davao City, and Taguig. The company also has plans for malls in Boracay, Pampanga, Cavite, Cainta, and Bacolod City.

Megaworld expects to see continued improvement in its real estate revenues, driven by the increase in construction activities, while its offices are expected to enjoy stable occupancy and continued rent escalations despite challenges in the office segment. The company also expects rent to exceed pre-pandemic revenues for its Lifestyle Malls, with higher occupancy and full rent collection projected. Hotel growth is expected to continue in line with the improving outlook for leisure and MICE (Meetings, Incentives, Conferences, and Exhibitions) activities.