MANILA, June 16 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
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)