Megaworld leisure unit spending P20 B in 3 years

MANILA, Philippines - Megaworld subsidiary Global Estate Resorts Inc. (GERI) is spending P20 billion over the next three years for expansion, setting its sights on boosting its rental income four-fold with new commercial centers and office towers in its various tourism estates across the country.

“In three years, our target rental income is P650 million, which is more than four times our rental income this year. We want to build our recurring income portfolio to ensure a stronger bottom line,” GERI president Monica Salomon said.

This year, the company’s rental income is expected to reach P150 million which will come mostly from office and commercial retail revenues in its properties in Pasig, Laguna and Batangas.

Within the year, GERI said it would open retail spaces in Southwoods Mall and Southwoods Office Tower at the 560-hectare Southwoods City, while another row of retail spaces will also open in Boracay Newcoast.

GERI is also eyeing to launch more integrated lifestyle communities (ILC) in the next three years.

 “We have three ILCs in our pipeline for launch before 2020. These developments are all in the south of Metro Manila where there is still abundance of nature,” Salomon said.

ILC differs from a township as it focuses on an expansive residential development with commercial components and nature as the extended amenity of the community.

Megaworld owns 82.3 percent of GERI and has taken an aggressive role in transforming GERI’s vast land bank into integrated urban townships.