Megaworld earmarks P55 billion for 2024 capex

MANILA, Philippines — Real estate giant Megaworld Corp. is spending P55 billion for capital expenditures this year to further bolster its expansive portfolio.

Alliance Global Group Inc. CEO Kevin Tan said the budget would be used to develop Megaworld’s existing and upcoming townships, residential projects, investment properties as well as for land acquisition.

“This year, Megaworld has budgeted P55 billion for capital expenditure, which is an important part of our overall P350-billion five-year capex program that began in 2023,” Tan said.

Megaworld is eyeing to complete around 180,000 square meters of office space and around 100,000 sqm of malls and commercial retail spaces for the year.

The company is ramping up its leasing portfolio until 2030 to reach three million square meters of gross leasable area (GLA) for both Megaworld Premier Offices and Megaworld Lifestyle Malls.

This represents a 52 percent hike from the company’s total leasing portfolio as of end-2023.

By the end of the decade, Tan said Megaworld’s GLA for office spaces will reach two million square meters while GLA for malls will reach one million square meters.

Megaworld said the new office stocks would be from its townships in Bulacan, Pampanga, Cavite, Bacolod and Metro Manila.

The new retail spaces, on the other hand, will come from its lifestyle mall properties in Cavite, Rizal, Pampanga, Bulacan, Bacolod, Cebu. Davao, Boracay and Palawan.

“Growing our malls and office segments within the next six years is a big part of our continuing expansion,” Tan said.

Megaworld expanded its office portfolio under Megaworld Premier Offices by 69,000 sqm of GLA to 1.5 million sqm last year.

Megaworld Lifestyle Malls, for its part, widened its GLA in 2023 by 33,000 sqm to 517,000 sqm with the opening of four new retail locations in various Megaworld townships.

Megaworld’s real estate investment trust company MREIT Inc., meanwhile, is set to acquire six office properties with a total value of P13.15 billion.

The acquisition will increase MREIT’s portfolio by 157,000 sqm or by 48 percent to 482,000 sqm.

“The acquisition of these properties moves us closer to our target portfolio of 500,000 sqm by the end of 2024. This transaction not only supports the sustained growth of MREIT but is also dividend accretive to our shareholders,” Tan said.

Tan said MREIT is immediately working on the next set of acquisitions to reach the company’s target assets under management before the year ends.

MREIT’s portfolio currently covers 18 office properties located in four Megaworld premier townships.