PROPERTY giant Megaworld Corporation expects to generate P11 billion in rental income this year, as it aggressively expands its office and mall portfolio, the company said.
In a statement, Megaworld said it expects to add 650,000 square meters of gross floor area to its portfolio, as it completes more office towers, malls, and commercial centers by yearend.
For the office segment, the firm aims to complete at least 10 office towers or add 287,500 square meters of gross floor area to the market.
It expects to finish projects, such as McKinley West, Mactan Newtown, Iloilo Business Park, and Uptown Bonifacio.
As for its malls and commercial centers, Megaworld said it expects an additional 371,000 square meters of gross floor area by the end of 2016, as it completes around 11 malls and commercial centers in Mckinley Hill, Uptown Bonifacio, McKinley West, The Mactan Newtown, Iloilo Business Park, ArcoVia City, Southwoods City, and Makati.
The company said expanding its office, malls, and commercial center portfolio would drive its recurring income to grow by more than 20 percent by the end of 2016.
“We are on-track in strengthening our office and mall portfolio, as we continue to experience robust demand for spaces, both office and retail, in our townships,” Megaworld Senior Vice President Jericho Go said. “Both our offices and retail spaces enjoy a very high occupancy rate of around 99 percent across our developments.”
The company said it currently has over 150 companies in its portfolio of office tenants, most of which are from the Information Technology and Business Process Outsourcing (IT-BPO) sector.
Among the tenant-companies are Accenture, Wells Fargo, HP, IBM, and United Health Group.
Go also emphasized that the firm offers a “ready market” to its partner retailers, as its malls and commercial centers cater to residents and BPO workers, who live and work in its township developments.
“In McKinley Hill, for example, where we have around 80,000 BPO workers and 12,000 residents,” Go explained, “They are the primary customers of Venice Piazza, Tuscany and the upcoming Venice Grand Canal Mall.”