Megaworld Corp., led by ANDREW L. Tan, raised its investment budget by 29 percent this year to P36 billion, up from P27.9 billion in actual capital expenses (capex) in 2020, as it “realigns” project proposals with pandemic constraints to meet demand in the residential property market.
“This is a highly focused [capex] initiative aimed at maximizing the usage of our usable cash at this point in time,” Megaworld’s chief strategy officer, Kevin L. Tan, said in a release on Thursday.
The majority of the budget, approximately 76 percent, would go into real estate growth, “especially the creation of new residential properties.”
This year, the company will introduce four residential projects in Cavite, Pampanga’s Capital Town, Iloilo Business Park, and Bacolod City’s The Upper East. These ventures are estimated to generate up to P8.3 billion in revenue.
Megaworld said it will sell approximately 4,000 units and lots in completed projects in Uptown Bonifacio, McKinley Hill, McKinley West, Eastwood City, Westside City, Capital Town Pampanga, Iloilo Business Park, and Makati City.
Meanwhile, 24% of the P36 billion capital expenditure would be spent on investment assets. The organization stated that it has not set a target for land banking operations for the current fiscal year.
“We continue to be vigilant and careful about our expenditure while we track the vaccine program’s success and the path of this pandemic over the next few months,” Mr. Tan stated.