Megaworld raises P3 billion from continued lot sale

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MEGAWORLD CORP. has generated P3 billion from having completely sold out a residential village in Cavite while under quarantine.

In a statement over the weekend, the Andrew L. Tan-led property developer said it sold all lots at its 18-hectare upscale residential village, Arden Botanical Village, last month.

This despite the challenges of the coronavirus pandemic, and two price increases implemented in January and May.

“Amid the lockdown, we have booked sales from buyers in the Philippines and across the world who were looking for purposeful, more livable spaces to build a house,” said Eugene Em Lozano, first vice-president for sales and marketing at Megaworld.

The project is located within Megaworld’s 251-hectare Arden Botanical Estate in Trece Martires. It was launched almost seven months ago and offered a total of 329 lots to buyers.

“A P7-million lot bought when we started selling late last year can now be sold at almost P9.5 million. Our early takers are so happy with their investments today,” Mr. Lozano said.

The lots are scheduled to be turned over to buyers starting 2024.

“Arden Botanical Village’s concept gave us a convenient push, and the unique concept of Arden Botanical Estate as an integrated lifestyle community was a huge factor in selling this fast even amidst the pandemic,” Mr. Lozano said.

The 251-hectare Arden Botanical Estate, where Arden Botanical Village is located, is a joint development of Megaworld and its listed subsidiary Global-Estate Resorts, Inc. (GERI). Both Megaworld and GERI are allocating P18 billion to develop the project over a 10-year period.

In the first quarter, Megaworld posted a 9% profit decline to P3.5 billion due to the impact of the Taal Volcano eruption and the coronavirus pandemic to its operations. Residential sales were flat at P9.6 billion due to the delayed construction of its ongoing projects.

The company has set a P36-billion budget for capital expenditures this year, lower by 40% from its initial allocation, in consideration of the effects of the ongoing pandemic.

Shares in Megaworld closed at P3.07 apiece on Friday, down seven centavos or 2.23% from a day earlier. — Denise A. Valdez