LISTED property developer Megaworld Corp. said it has allocated P300 million from proceeds of a recent block sale of shares in its real estate investment trust unit MREIT, Inc. to fund expansion of its residential and township developments.
In a disclosure on Wednesday, Megaworld said P200 million will go to its 30-hectare Mactan Newtown township in Cebu, envisioned as a business and leisure hub.
The company earmarked another P100 million for the development of malls, offices, and land in Bacolod.
As of Sept. 30, Megaworld said it has yet to disburse P857.6 million from the total P1.16 billion raised from the July block sale of 84.4 million common shares in MREIT.
In a separate disclosure, Megaworld said it reinvested an additional P100 million from another sale of MREIT shares to projects in Cebu, Palawan, and Bacolod.
Of the amount, P40 million was allocated to the 462-hectare Paragua Coastown in Palawan, P30 million to The Mactan Newtown, and P30 million to Bacolod developments.
The reinvested funds came from the P2.21 billion raised from the sale of 168.63 million MREIT common shares.
Megaworld’s second-quarter attributable net income climbed 35% to P5.6 billion from P4.15 billion a year earlier, driven by stronger leasing, residential, and hospitality revenues.
At the local bourse on Wednesday, shares in Megaworld slipped by 5% or 10 centavos to close at P1.90 apiece, while MREIT shares declined by 0.87% or 12 centavos to P13.70 each. — Beatriz Marie D. Cruz
