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Megaworld 1H 2014 profits rise 289% to Php 16.4 billion

Megaworld, the Philippines’ leading property developer and the no. 1 office developer and landlord, posted a net income of P16.44-billion (inclusive of the P11.62-billion non-recurring gain from the acquisition and sale of subsidiary and associate) for the first half of 2014, 289-percent higher than the P4.23-billion for the same period in 2013 due to strong residential sales in its various townships, particularly in Newport City, Uptown Bonifacio, McKinley Hill and Eastwood City; and higher leasing income from its office and retail portfolio.

“I am confident that Megaworld can sustain its core growth momentum as we continuously expand all business segments in our townships across the country,” says Dr. Andrew L. Tan, chairman and CEO, Megaworld.

On the other hand, Megaworld’s rental income from office developments and lifestyle malls surged to a record P3.44 billion in first half 2014, 22 percent higher than P2.83 billion same period in 2013.

Total revenues of Megaworld, together with its subsidiaries Global Estate Resorts Inc., Empire East Land Holdings and Suntrust Properties, amounted to P31.96 billion for the first half 2014, up 85 percent from P17.28 billion for the same period in 2013.

Megaworld, and its subsidiaries, posted P47 billion in reservation sales in the first half 2014 which is 9 percent higher compared to same period last year.

In June, Megaworld has completed the consolidation of Tan’s real estate companies under Megaworld with the acquisition of 49.2% stake of Alliance Global Group, Inc. in Global-Estate Resorts, Inc. (GERI). The acquisition brings Megaworld’s majority stake in GERI to 80.4% and increases the property giant’s total land bank to around 4,000 hectares.

Megaworld group has launch a total of 16 residential projects during the first half of 2014. Megaworld has launched 6 projects namely; Salcedo Skysuites in Makati CBD, The Venice Luxury Residences – Fiorenzo Tower, The Florence Tower 2 and Viceroy East Tower in Mckinley Hill, Taguig, Lafayette Park Square in Iloilo and Mactan Belmont Luxury Hotel in Mactan, Cebu. Empire East has launched 4 projects namely; Mango Tree Residences East and West Tower in San Juan, Kasara Urban Residences Tower 5 in Pasig, and Pioneer Woodlands Park 2 in Mandaluyong. Suntrust has launched 5 projects namely; Suntrust Ascentia and Suntrust Solana in Manila, Suntrust Amadea in Quezon City, 88 Gibraltar in Baguio City and Siena Hills in LIpa, Batangas. GERI has launched Pahara Residential Village at Southwoods City.

Megaworld is also set to further solidify its position as the leader in office developments in terms of total office space inventory by completing another 112,000 square meters of office spaces this year.  By the end of 2014, the company will have around 712,000 square meters of office spaces in its portfolio with the completion of new state-of-the-art office towers in Uptown Bonifacio, The Mactan Newtown in Cebu, and Iloilo Business Park.

On the retail side, Megaworld is also set to complete additional commercial and retail spaces with the completion of the Venice Grand Canal Mall in McKinley Hill, and some commercial strips at The Mactan Newtown. Megaworld’s existing commercial and retail space portfolio is currently at 304,083 square meters.

Megaworld has pioneered the “LIVE-WORK-PLAY-LEARN” lifestyle concept for mixed-use communities in the Philippines, which are popularly known as “townships.”

To date, the company has 10 townships all throughout the country covering around 300 hectares of land. This includes the 17-hectare Eastwood City, which is considered to be the country’s first cyberpark; the 50-hectare McKinley Hill in Fort Bonifacio; the 25-hectare Newport City in Pasay City; the 5-hectare Forbes Town Center in Bonifacio Global City; the 28.8-hectare The Mactan Newtown in Lapu-Lapu City, Cebu; the 15.4-hectare Uptown Bonifacio in Bonifacio Global City; the 34.5-hectare McKinley West in Fort Bonifacio; the 12.3-hectare Woodside City in Pasig City; the 11-hectare Davao Park District in Davao City; and the 72-hectare Iloilo Business Park in Iloilo City.

Over the past 25 years, the Megaworld Group has emerged as the country’s No. 1 real estate organization.  It has completed more than 320 residential and office buildings with a total area of around 5.6 million square meters.  Currently, about 185 residential, office and hotel buildings with a total area of around 5.4 million square meters are under development. ##

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