Manila, Philippines.
MEGAWORLD CORP. plans to match 2011 capital expenditure levels this year as it moves to launch more projects, a disclosure released yesterday showed.
“We confirm that Megaworld has allotted P25 billion for its capital and development expenditures this year,” the company said.
Last year, the Megaworld had earmarked P25 billion in capital spending to fund the construction of eight residential projects within Metro Manila, with an approximate total net value of P60 billion.
For 2012, Megaworld aims to launch 11 residential projects in the first semester alone, with Metro Manila and Cebu eyed as possible sites.
For 2012, several property consultancy firms have projected a rosy outlook for the local residential property market, according to earlier reports.
Last month, property consultant CB Richard Ellis Philippines, Inc. said market focus for this year will be on middle-market condominium developments as flexible payment schemes and better interest rates attract young professionals and start-up families in the country’s major business districts.
Over 700,000 square meters (sq. m.) of saleable residential area are estimated to enter the market this year, CBRE Philippines had said.
Megaworld recently claimed the lead in the number of condominium units set for completion in the next four years, with a December 2011 report by property consultancy Colliers International Philippines projecting 1.15 million sq. m. of total aggregate saleable area for Megaworld by 2016.
Since its founding in 1989, Megaworld has claimed to have launched more than 225 residential and office buildings completed with a total floor area of around 5.5 million sq. m.
The company is currently developing over 40 residential and business process outsourcing (BPO) projects in Metro Manila.
Aside from Metro Manila, Megaworld is also looking to firming up its presence in central Luzon where the former United States military bases were situated until 1991.
Last November, the company forged a P7-billion deal with state-run Clark Development Corp. to develop portions of the Clark Freeport Zone and Clark Special Economic Zone in Pampanga province into mixed-use projects.
The developer also penetrated the Cebu property market via residential development 8 Newton Boulevard, which was launched last year.
Megaworld increased its net income from January to September last year to a record P4.08 billion, up 36% year on year, on the back of continued strong residential real estate sales and BPO office rental income.
Profits in the third quarter alone, however, declined by 19% to P1.539 billion from P1.903 billion in 2010.
Megaworld shares added 0.51% to P1.97 yesterday from P1.96 at its previous close, while parent firm Alliance Global Group, Inc. plunged 3.33% to P12.18 apiece. -- Franz Jonathan G. de la Fuente
source: bworldonline.com
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