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Megaworld earmarks P300B for five-year expansion plan

Andrew Tan-led Megaworld Corp. is earmarking around P300 billion for financing townships and integrated lifestyle developments in the next five years.

During the company’s annual stockholders meeting in Quezon City on Friday, Megaworld chief strategy officer Kevin Tan said 65% or P195 billion of the P300-billion capex for 2020 to 2024 will be spent on constructing residential developments and investment properties such as premier offices, lifestyle malls, and hotels.

The balance of 35% or P105 billion will be allocated to land acquisition and land banking.

On the sidelines of the stockholders’ meeting, Tan said Megaworld’s P300-billion five-year capex will be financed through internally generated cash and borrowings—but mostly internally.

Megaworld has allocated P285 billion to its previous five-year capex program in 2014 to 2019, most of which have been used to fund property and township developments.

The new capital expenditure program will fuel the company’s five-year pipeline of residential, office under its Megaworld Premier Offices brand, commercial retail under its Megaworld Lifestyle Mall brand, and hotel developments, as well as possible land acquisition opportunities, Tan said.

“Megaworld has secured significant coverage of raw land in the areas where we want to be in. Our focus now is on developing the land in order to sustain and further propel our strong earnings moving forward,” he said.

The company has around 4,700 hectares of land bank in its portfolio, which should expand by nearly 45% or another 2,000 hectares with the launch of six more townships and integrated lifestyle communities next year.

“Our existing land bank would be sufficient for the next 10 to 15 years of development,” Tan said.

Around 3,000 hectares of land is covered by the company’s township developments in Luzon, mostly in the CALABARZON area.

In Metro Manila, Megaworld has key land holdings of nearly 300 hectares, more significantly in Makati, Fort Bonifacio, Quezon City, and in the bustling Manila Bay Area—particularly within Entertainment City where the company is currently the largest land owner and developer.

Megaworld’s townships cover 600 hectares of land in the Visayas and Mindanao, particularly in Iloilo, Bacolod, Boracay, Cebu and Davao.

In the past 30 years, Megaworld built around 700 residential developments, 1.6-million square meters of leasable spaces under both Megaworld Premier Offices and Megaworld Lifestyle Malls, and over 3,000 rooms across its hospitality developments under Megaworld Hotels. —VDS, GMA News