Megaworld sees rental income from prov’l townships growing

Megaworld

Mactan, Cebu– Megaworld Corp., one of the country’s biggest real estate developers, is seeing an improvement in its rental income coming from its township developments that are located in the provinces, banking on some of its biggest projects including the 30-hectare Mactan Newtown, which is on track to have 80,000 square meters (sqm) of office space by 2018.

Jericho Go, Megaworld senior vice president, said while the company still sources bulk of its rental income in Manila, the share of the provincial townships in the group’s total recurring income should increase by up to 30 percent in 2021.

“In general, our rental income is still driven by Manila by about 80 to 90 percent. In 2021, as we continue to have this trajectory [in the development of office buildings in the provinces] we feel that the number should improve from 10 to 20 percent to 20 to 30 percent. And this will be largely sourced from Mactan Newtown as well as in our township projects in Iloilo and Davao,” Go told reporters in a briefing held here.

For this year, the company is targeting to hit P11 billion in recurring revenue, which would comprise leasing income from its office, commercial, and mall operations, a bit higher compared to the P9 billion it recorded in 2015.

Go said they are on track to hit that target as the company continues to eye more Business Process Outsourcing (BPO) companies to occupy their developments.

On Wednesday, US-based BPO giant Concentrix announced that it will be expanding to Cebu and will initially occupy 2,600 square meters (sqm)bof office space in the Tower 3 of 8 Newtown Boulevard, one of the office buildings in Mactan Newtown.

Concentrix will be the fourth BPO company to open its Cebu operations within the development, following the entry of The Results Companies, Enfra USA and Manulife.

“The entry of Concentrix in Cebu, through The Mactan Newtown, is a clear indication of our continuing commitment to build the largest cyberpark in Mactan and to further strengthen Cebu’s position as the country’s top BPO hub,” Go said.

The mixed-use cluster of 8 Newtown Boulevard has four office towers with total leasable space of around 25,400 sqm. Each tower has three floors of office spaces while the ground floor will be leased for commercial and retail purposes.

With the opening of the new office towers in 8 Newtown Boulevard, the total office space inventory in The Mactan Newtown already reached over 38,000 square meters, generating at least 12,000 jobs.

As of now, Megaworld is building an interim beachfront pavilion to primarily cater to the BPO companies that need venues for teambuilding activities and events.

Go said that within the next five to seven years, the area that used to be the Portofino Beach Resort will be transformed into a world-class tourism hub that includes a beach club, sports and recreational facilities, and hotel developments.

“Our BPO partners will certainly have their own access to the beach, just the same privileges that we plan to give to our condo residents,” Go mentioned.

By 2021,Mactan Newtown will have up to ten office towers, offering an estimated 150,000 square meters of office spaces that can accommodate around 45,000 workers in the IT-BPO sector.
Read more at http://www.mb.com.ph/megaworld-sees-rental-income-from-provl-townships-growing/#2OFFVmmjTjxIxu3d.99

Source: http://www.mb.com.ph/megaworld-sees-rental-income-from-provl-townships-growing/

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