Megaworld eyes 40% hike in reservation sales to P35B
MANILA, Philippines - Megaworld Corp. is eyeing a 40-percent growth in reservation sales this year to P35 billion, according to a top company official.
In his speech during the company’s annual stockholders’ meeting yesterday, Megaworld chairman and president Andrew Tan said the company is poised to grab growth opportunities in the real estate sector as it expects increasing income from a slowly stabilizing economy, continued influx of foreign investors, and a low interest rate regime to drive property sales.
Tan emphasized that the residential, commercial and office segments of the domestic property market continue to show significant growth in both the number of projects and in sales. “If this continues on to 2012 and beyond, we should expect the Philippines to eventually become replete with bustling metropolitan areas with modern skylines and complete mega-communities,” he said.
Megaworld senior vice-president Kingson Sian said the company is extremely optimistic on prospects of net earnings growing double-digit this year from P8.1 billion in 2011. “We believe the winning sectors continue to be the property and BPO sectors. This is our decade,” he said.
Sian added that the anticipated rating upgrade for the country to investment grade status will augur well for the real estate sector.
Megaworld, which has been acknowledged as the country’s leading residential condominium developer, has acquired a landbank of around 230 hectares located in key growth areas, including 55 hectares of land in Iloilo and 25 hectares in Cebu. Within Fort Bonifacio, the company has 7.1 hectares of the former Napolcom land near the international schools and 8.5 hectares at the North Central Business District.
These properties have a total land area of 2.29 million square meters, of which around one million sqm will be developed into residential areas and around 886,000 sqm alloted for office spaces. The remaining land will be used for retail and leisure development projects.
Megaworld is expected to launch 11 new projects in the first half as part of its P25-billion capital spending this year.
Sian said the company, which has net cash of P10 billion, will start construction of its integrated casino resort along Roxas Blvd., in the latter part of the year with the soft opening targeted in 2016.