Focusing on townships beyond Metro Manila
MEGAWORLD Corp. is spending P180 billion to develop existing provincial townships over the next 10 years, driven by the growth opportunities outside of Metro Manila.
During its annual stockholders’ meeting on Friday, the firm said the capital spending will cover 12 townships in the provincial areas.
Megaworld noted that eight of the townships are already in business. Four would be developed within the next three years, including Northill Gateway, The Upper East, The Capital, and Maple Grove.
“Those partially operational are the townships that have opened some of its components while some of the residential, office, commercial, and leisure components are still under construction. Maturity of townships usually takes 10 to 15 years, depending on the size and components,” said Megaworld Executive Director Kingson Sian.
From Megaworld’s land bank of over 4,000 hectares, a little over 3,000 hectares has been used.
“This means, we still have around 1,000 hectares of land to develop and we are excited to do that in the years to come,” Sian said.
In a separate press briefing, Sian noted the strategy to expand in the provinces can be seen in the land portfolio.
“In the past, we’ve already put this strategy together. The land is there, which means we already have that strategy,” Sian said.
“We have remained to be a strong real estate developer in Metro Manila during the past 27 years. Now, we are further spreading our nation-building efforts, particularly in developing idle lands into bustling business and lifestyle districts, to the key cities and towns across the country where economic opportunities abound, he added.
Megaworld Senior Vice President Jericho Go noted the foray into provincial areas will help decongest Metro Manila.
“There is a conscious effort to do that because—since we have a substantial stake in Metro Manila —part of making Metro Manila livable is to decongest the pollution, crowd control, and everything as its putting tight screws on infrastructure, transportation,” Go said.
Sian noted there is no specific plan yet on funding the capital expenditure, but that this year’s capex will be internally-generated.
“That’s still over the next 10 years. So depending on the pace of selling—if the pace of pre-selling is fast enough—then obviously that would throw up a lot of cash that can fund the other components,” Sian said.
“That P180 billion is devoted for that 12, but if we add more, then obviously we have to add to the capex,” Sian said.