Corporate News

Deal sealed for free port development

Posted on November 30, 2011

REAL ESTATE firm Megaworld Corp. has forged a deal with state-run Clark Development Corp. to build a P7-billion, mixed-use development at a free port in Pampanga, a disclosure to the local bourse yesterday showed.

The Andrew L. Tan-led developer signed a memorandum of agreement to develop portions of the Clark Freeport Zone and Clark Special Economic Zone totaling 550 hectares, the disclosure stated.

The Megaworld complex, located within the site of the former United States Air Force base in the Philippines, will feature office, commercial, and retail spaces, as well as leisure and entertainment, residential, health and wellness components.

These amenities would be able to cater to foreign and local business process outsourcing firms, retirement communities, and tourism enterprises beyond the company’s existing base in Metro Manila, Megaworld said.

Megaworld’s planned mixed-use development, which will start to be constructed next year,is seen to boost the Clark Freeport zone’s bid to be a major regional investment hub.

Megaworld, founded and incorporated in 1989, is engaged in the development of large-scale mixed-use planned communities or townships that integrate residential, commercial, educational, leisure and entertainment components in Metro Manila.

Property development projects include Eastwood City, Forbes Town Center, McKinley Hill, Newport City, Manhattan Garden City, Cityplace, Bonifacio Uptown, and McKinley West.

The company said its third- quarter net income declined by 19% to P1.539 billion from P1.903 billion in year-ago levels as real estate sales remained flat at P4.550 billion from P4.554 billion last year. Third-quarter total revenues were up by 11.45% to P7.208 billion versus P6.647 billion last year.

Total expenses in the July-to-September period, however, rose by nearly a quarter to P5.668 billion versus P4.563 billion on the back of higher operating costs.

Megaworld shares rose by 1.69% to P1.80 yesterday from P1.77 at its previous close. -- Franz Jonathan G. de la Fuente