MEGAWORLD Corp. is set to focus on the construction of townships in 2018 as it now has a total of 23 integrated estates launched from previous years.

Jericho P. Go, Megaworld senior vice-president, said the property company should be working on the build-up of these projects to ensure that it holds true to its concept.

“What is important to emphasize here is, more than the launching of townships, now is the time for execution … 23 is a very solid number in terms of townships, but what is important is to fill those townships with our live-work-play-learn concept. So that’s the next step,” he said.

Megaworld’s latest township is The Hamptons Caliraya, an P8-billion lakeside tourism estate in Laguna to be developed by its 82% owned subsidiary, Global-Estate Resorts, Inc. Launched earlier in December, the company has committed to develop the 300-hectare property in Lumban-Cavinti, Laguna over the next 10 years.

Among the company’s big-ticket projects also launched in 2017 is Capital Town, a 35.6-hectare township in San Fernando, Pampanga where Megaworld will be pouring in P30 billion worth of investments in the next 10 years.

Other townships undergoing development include the 640-hectare Eastland Heights in Antipolo, Rizal; Westside City, spanning 31 hectares within the gaming hub Entertainment City in Parañaque; and the Alabang West in Las Piñas City with a total of 62 hectares.

BULLISH FOR ONLINE GAMING
Mr. Go noted that Megaworld remains positive on the prospects of online gaming based on the growth it had exhibited over the last six months.

To date, online gaming — or Philippine offshore gaming companies (POGOs) — has taken up over 10% of Megaworld’s office inventory, or more than 100,000 square meters.

“Online gaming continues to grow. We’ve seen that the demand … is very healthy for the online gaming market. And they (POGOs) also help in driving the demand for residential ready-for-occupancy spaces. They show no signs of slowing down, but very strategic, mostly in township communities. You should have them best in a location where they (residents) can just walk to work,” Mr. Go explained.

Alongside the continuous growth of POGOs, Mr. Go said Megaworld is expecting the resurgence of the business process outsourcing (BPO) market.

While BPOs are still the largest lessor of office space in the country, the industry encountered a slowdown in 2017 due to delays in approval of Philippine Economic Zone Authority (PEZA)-accredited buildings.

International BPO firms rely on PEZA accreditation to secure incentives for operating in the Philippines.

Mr. Go said these delays caused a pent-up demand from BPO firms, which should push their growth next year as more PEZA licenses are approved.

He said a game changer was the recent issuance of PEZA certifications. He said about 50 licenses had been put on hold, but about eight came out in the past two months.

As of September, Megaworld booked an 11% increase in net income attributable to the parent to P9.98 billion from revenues that rose 5% to P35.43 billion because of the increased take-up in both office and residential spaces. — Arra B. Francia

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