Megaworld to spend P30B to expand office space portfolio in next 5 years

Listed property developer Megaworld Corp. is set to invest P30 billion in the next five years to expand its office portfolio, as the company is set to open additional spaces in its townships across the country.

In a regulatory filing, Megaworld said it will open another 50,000 square meters of office inventory within the year, located in Bacolod, Iloilo, and Cebu. It also plans to have additional office spaces in Bulacan, Pampanga, Davao, Metro Manila, and other new growth areas where the company has townships.

Megaworld currently has 1.6 million square meters of leasable office space, and aims to have 2 million square meters of gross leasable office space by 2030.

“We are optimistic about the office sector in the Philippines, particularly as more international companies continue to come in, either to establish their presence or expand their operations here,” Kevin Tan, president and chief executive officer of Alliance Global Group, the parent company of Megaworld, said.

“We see a significant spike in demand for office spaces, not just among BPO (business process outsourcing) companies, but even from traditional tenants as well,” he added.

Megaworld so far this year opened office towers in provincial townships covering some 60,000 square meters of gross leasable area (GLA) including Enterprise One in Iloilo Business Park, No. 1 Upper East in The Upper East Bacolod, and Pasudeco Tower in Capital Town Pampanga.

Data released by Leechiu Property Consultants (LPC) showed that there were some 690,000 square meters of vacated office spaces in 2024, following the ban on Philippine Offshore Gaming Operators (POGOs) ordered by President Ferdinand “Bongbong” Marcos Jr.

This brought the country’s overall vacancy to 3.3 million square meters, which compares with the demand of 1.1 million square meters, with the vacancy rate estimated at 18%. Demand from the government accounted for 122,000 sqm, the IT-BPM at 422,000 sqm, the traditional sector at 492,000, and POGOs at 76,000 sqm

Megaworld reported a 12% growth in its net income to P21.666 billion in 2024, as consolidated revenue rose by 17% to P81.867 billion, while costs and expenses climbed to P60.020 billion from P50.327 billion.

The company in January announced plans to expand with at least two more townships in over 300 hectares of land in growth areas in Luzon and Visayas this year.

Megaworld’s real estate portfolio includes residential condominium units, subdivision lots and townhouses, as well as office projects and retail spaces. Its businesses include real estate sales, leasing of office spaces, and management of hotel operations.

Its subsidiaries include Richmonde Hotel Group International Limited, Eastwood Cyber One Corp., Empire East Land Holdings Inc., Global-Estate Resorts Inc., and Bonifacio West Development Corp.—AOL, GMA Integrated News