Megaworld sets P36B capex this year, readies P8.3B new residential projects

Bilyonaryo Andrew Tan’s Megaworld Corp. is scaling up capital spending this year to P36 billion to take advantage of the robust demand for residential properties especially in Metro Manila.

This year’s budget is 29% higher than the P27.9 billion spent last year.

Megaworld said 76% will go to the construction of new residential properties, while the remaining 24% will be for investment properties.

No amount has been allocated for land banking as the company remains cautious and prudent with its spending.

Kevin Tan, chief strategy officer at Megaworld, said they are closely observing how the government’s vaccination program will progress and how long this pandemic will last.

“This is a very targeted CAPEX program aimed at optimizing the use of our available cash during this time,” said Tan.

The company expects to generate P8.3 billion in sales from four new residential projects 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

Megaworld is also set to turn 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,” Tan said.