Megawide expects to seal P5-B contracts with big developers

Manila, Philippines - Construction and engineering firm Megawide Construction Corp. expects to seal up to P5 billion worth of contracts with several real estate developers.

On the sidelines of the company’s annual stockholders meeting yesterday, Megawide president Edgar Saavedra said negotiations are ongoing with two major listed property firms and two other companies, and that a deal is expected to be consummated within the next two to three weeks.

Megawide chairman Michael C. Cosiquien said the move is aimed at expanding its customer base to further augment income but noted that SM Development Corp., the residential construction arm of the Sy family, would remain its top client.

SMDC accounts for 70 percent of Megawide’s projects. The Sy family also owns around 20 percent of Megawide.

Other clients of Megawide include Belle Corp., Antel Group, Suyen Corp. (owner of Bench), Prince Jun Development Group, Bellevue Hotel Group, Keppelland Realty, Malate Bayview Development Group and Goldland Properties and Dynamic Realty.

Saavedra said the company is also gearing up to bid for government infrastructure projects in joint venture with other entities.

Megawide chief investment strategist Oliver Tan said the company is mulling the possibility of raising up to P1.5 billion from the debt market to fund its general working requirements.

The company sees its net income more than doubling this year to as much as P800 million. The company initially projected net earnings of P560 million by the end of the year.

Megawide is putting up a P1-billion state-of-the art manufacturing plant, located in Taytay, Rizal, which will become the country’s biggest one-stop-shop pre-cast concrete facility to serve the undertapped low to mid-rise housing market.