MANILA – Andrew Tan-led property developer Megaworld said it will be spending P285.8 billion in the next five years for its capital expenditure program, 24 percent higher than the initial 5-year, P230 billion capex announced last year.
The amount will be spent to develop Megaworld’s various township projects across country.
“We have adjusted our capital spending to pave the way for the expansion of offerings in our existing townships and for the new additional township projects that we recently announced,” said Francisco Canuto, senior vice president and corporate information officer at Megaworld.
For 2015, the firm will be spending P65 billion to build more residential and hotel projects, office buildings as well as malls and commercial centers inside its integrated urban townships.
The bulk of capital spending or about 74 percent will be spent this year for development projects, mostly in townships, while the remaining 26 percent will be for land acquisition and property investments.
Megaworld earlier announced that it will be launching five townships this year to add to its existing 15 township developments.
“Certainly, we have sufficient land bank and landholdings that will sustain our plans to further expand and grow our townships all over the Philippines. While we continue to create and expand our mixed use communities in Metro Manila, we will also expand our presence in the provinces especially in major growth centers,” said Canuto.
The Megaworld Group, which also includes its subsidiaries Suntrust Properties, Inc., Empire East Land Holdings, Inc. and Global-Estate Resorts, Inc., is also set to launch 22 residential projects in Metro Manila, Laguna, Batangas, Boracay, Iloilo and Bacolod.
Three hotel towers will also be launched in Boracay Newcoast, 10 office towers in McKinley West, McKinley Hill, Eastwood City, Woodside City, Davao Park District, and Southwoods City; and three malls and commercial centers across its townships all over the country.
The Megaworld Group completed 16 residential projects and five BPO office towers with retail components last year.