Philippines' Megaworld earmarks $5.24 bln capex until 2018
MANILA, June 16
MANILA, June 16 (Reuters) - Philippine property developer Megaworld Corp plans to spend 230 billion pesos ($5.24 billion) through 2018 for land banking and to build new office and residential towers, company officials said on Monday.
The company plans to build 10 residential and six office towers annually in the next five years, bolstering its available office space to 1 million square meters, Jericho Go, first vice president at Megaworld, told reporters.
The bulk of the office space will be allotted for backoffice and business process outsourcing (BPO) companies because Megaworld wants to maintain its title as the country's largest "BPO landlord", Go said.
Megaworld's BPO space was 539,384 square meters in 2013, while its closest competitor in the office segment, Ayala Land Inc, had 306,094 square meters, according to brokerage Colliers International.
With the planned expansion, the company's share of office leasing income will increase to 50 percent in five years from 40 percent currently, Go said. He declined to give profit guidance for 2014 and beyond.
Most of the funds for capital expenditure in the next five years will sourced "internally," said Megaworld investor relations director John Hao.
"But there will be some debt raising. We still have room for leverage," Hao added.
Hao also said the company currently has no plans of tapping the equity markets for funds.
Megaworld shares were flat on Monday. They have gained almost 40 percent so far in the year, outperforming Manila's benchmark index, which is up nearly 15 percent.
($1 = 43.86 Philippine pesos) (Reporting by Siegfrid Alegado; Editing by Matt Driskill)
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