Megaworld sets aside P36-B capex this year

Megaworld to launch residential projects in key provincial townships worth P8.3-B; set to turn over almost 4,000 residential units this year

Township developer Megaworld is allocating P36-billion for capital spending this year, as it realigns project developments with the restrictions brought about by the strict quarantine measures that affect construction movements as well as demand for residential properties especially in Metro Manila.

This year’s capital expenditure (CAPEX) is 29 percent higher than the P27.9-billion actual spending in year 2020. Around 76 percent will be allocated for real estate developments, such as 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 L. Tan, chief strategy officer of Megaworld.

This year, the company is launching four 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. They are expected to generate around P8.3-billion in sales.

During the year, Megaworld is also turning over almost 4,000 units and lots from its completed residential developments across the country with a total value of around P60-billion. These 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,” adds Tan./

Featured photo source: Megaworld Corp.

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