Megaworld allots P36 billion for ‘targeted capex program’
ANDREW L. Tan’s Megaworld Corp. increased its spending budget this year by 29% to P36 billion from P27.9 billion in actual capital expenditures (capex) in 2020 as it “realigns” project plans with pandemic restrictions to cater to the demand in the residential properties segment.
“This is a very targeted [capex] program aimed at optimizing the use of our available cash during this time,” Kevin L. Tan, chief strategy officer at Megaworld, said in a statement on Thursday.
The majority or around 76% of the budget will be used for real estate developments, “particularly on the construction of new residential properties.”
The company will be launching four residential projects this year at Maple Grove in Cavite, Pampanga-based Capital Town, Iloilo Business Park, and The Upper East in Bacolod City. Sales from these projects are expected to reach up to P8.3 billion.
Megaworld said it would turn over nearly 4,000 units and lots valued at around P60 billion from completed developments 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 capex will be used for investment properties. The company said it did not set a budget for land banking activities this year.
“We remain cautious and prudent with our spending as we are still observing how the vaccination program will progress and where this pandemic will be leading us in the next few months,” Mr. Tan said.
On Thursday, shares of Megaworld at the stock market went up by two percent or six centavos to close at P3.06 each. — Keren Concepcion G. Valmonte