Megaworld Corporation, the country’s largest condominium builder, expects earnings and revenue growth in 2014 to be sustained or even exceeded this year as it continues to see strong demand for its office, residential, and retail projects.
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| Iloilo Business Park in full swing with the on-going construction of the Iloilo Convention Center (middle) flanked by the Courtyard by Marriott and Richmonde Hotels (in blue glass cladding) and Startek BPO building. |
“We are over-optimistic that we should be able to match our achievements in 2014 if not exceed it this year,” said Megaworld Senior Vice-President Jericho Go in an interview.
He explained, “We are accelerating and increasing our build up of township projects starting with the offices. With offices come retail and residential sales. So we’re very optimistic about 2015. I think the trajectory points to a substantial amount of growth for 2015.”
Go said that for the firm’s office leasing operations will be “definitely double digit.” For the residential segment, Go said, “We have to reassess if we can still achieve a double digit growth percentage-wise because it already has a big base.”
For its Iloilo township alone, Go said Megaworld is already building two more office buildings with a leasable area of 10,000 square meters each for the business process outsourcing sector after its first three buildings were leased out earlier than expected.
“We are building two more which we are hoping to complete and operational by the end of 2015 at the earliest, to the first half of 2016 at the latest,” he said.
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| Richmonde Hotel and Startek, up close. |
Go said they have fully leased out One Global and Two Global (now renamed Startek) which has a leasable area of 10,000 sqm. each as well as the office component of the Richmond hotel building which has about 6,000 sqm. of office space at the lower floors.
“The growth momentum is starting to pick up for Iloilo…There’s demand. We are getting inquiries from those who still want to locate there after we were already fully leased out,” said Go.
He noted, “Sometimes it’s a chicken and egg situation. They don’t want to be the first. But after someone has put up offices there, many are now scrambling to get a piece of the action. So I think more than half the battle is already won when we started to have Startek and another international brand coming in.”
Meanwhile, Go said other components of the Iloilo township are also in full blast. “The mall we’re constructing it and it should be finished towards the end of 2015. And then certain retail establishments. We are planning to support the holding the 2015 APEC ministerial side meeting in Iloilo,” he said.
He also sees demand for residential projects picking up soon as the first three office buildings are seen to employ about 5,000 to 7,000 workers.
“So all of a sudden these people will look for places they can live in. So the sales of residential condominium in Iloilo will also be aided substantially,” Go said.
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Original Article written by James Loyola as published on The Manila Bulletin
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