Megaworld Corp. intends to spend P36 billion as capital expenditure this year as it realigns project developments due to the pandemic and the demand for residential properties especially in Metro Manila.
“This year’s capital expenditure is 29 percent higher than the P27.9 billion actual spending last year,” the company said.
Megaworld said around 76 percent will be allocated for real estate developments particularly on the construction of new residential properties, while the remaining 24 percent will be for investment properties.
No amount has been allocated for landbanking initiatives.
“We remain cautious and prudent with our spending as we are still observing how the vaccination program will progress and where this pandemic will be leading us in the next few months. This is a very targeted capex program aimed at optimizing the use of our available cash during this time,” said Kevin Tan, Megaworld chief strategy officer.
This year, the company is launching four residential projects worth P8.3 billion, particularly 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.
The company also intends to turn over almost 4,000 units and lots this year from its completed residential developments across the country, worth 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,” Tan said.
“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 added. – Ruelle Castro
