MEGAWORLD CORP. is expanding its portfolio to 35 townships as it starts the development of The Upper Central integrated lifestyle community in Cagayan de Oro City.
The 117-hectare township is being developed by Megaworld’s subsidiary Global-Estate Resorts, Inc. (GERI).
“With GERI as the primary developer of The Upper Central, it is allocating an initial P5 billion to develop the entire integrated lifestyle community in the next ten years,” Megaworld said in a stock exchange disclosure on Monday.
The Upper Central is located along J.R. Borja Road in Barangays Gusa and Indahag, overlooking Downtown Cagayan de Oro. The township is 10 to 15 minutes away from the city’s downtown area and less than an hour away from Lagu-indingan International Airport.
“The Upper Central will be a milestone development as it is our 35th township launched on our 35th year in the Philippine real estate industry. As we develop this new township, our vision as a developer remains: to help uplift the lives of the community and also to help propel the local economy through the jobs that we create. We hope to impart this lasting impact to Kagay-anons and the rest of the people of Mindanao,” Megaworld President Lourdes T. Gutierrez-Alfonso said.
Highlighted by views of Macajalar Bay and the Malasag Mountain Range, the township will have residential villages, a pedestrianized commercial and shophouse district, mixed-use developments, and its own town center.
The township will feature a central park, landscaped open spaces, viewing decks, mountain and bike trails, and an adventure park, with sloping terrain reaching up to 245 meters above sea level.
About 40% of the township will be allocated for roads, as well as green and open spaces.
“We are envisioning building a whole new lifestyle district in this higher part of Cagayan de Oro,” GERI President Monica T. Salomon said.
Philippine Statistics Authority data this year showed that Cagayan de Oro is the second richest city outside of Metro Manila in terms of per capita gross domestic product.
UK-based Oxford Economics placed Cagayan de Oro as the third city in the Philippines with the largest urban economy, only behind Manila and Cebu.
“Ever since, we have already set our eyes on Cagayan de Oro City because this is the gateway to many parts of Northern Mindanao. For the past years, our group has been carefully evaluating the concept of development that we want to put in this bustling city. Now is the perfect time to take part in the booming real estate industry of this side of Mindanao,” Megaworld Executive Director Kevin Andrew L. Tan said.
Meanwhile, MREIT, Inc., the real estate investment trust (REIT) arm of Megaworld, is eyeing expansion into Cebu, Bacolod, and Pampanga over the next three years.
“As opportunities arise, the company may choose to diversify into other high-growth geographic areas like Cebu, Bacolod, and Pampanga, as well as other growth areas in the country where the sponsor’s (Megaworld Corp.) townships are located,” MREIT said in a separate regulatory filing on Monday.
According to the company, its diversification plans also include investments in other types of real estate assets such as retail, hospitality, industrial, logistics, warehouse, and other sectors that meet its criteria for “Grade-A, centrally located, stably occupied, and income-generating” properties.
“Properties to be acquired will primarily be Megaworld assets but may also include assets owned by third parties. Acquisitions will be funded either through debt, equity, or a combination of both,” MREIT said.
The company previously said that it aims to have one million square meters of gross leasable area across its portfolio by 2030.
In October, MREIT secured approval from the Securities and Exchange Commission to acquire six office properties from Megaworld.
Valued at P13.15 billion, the properties include Two West Campus, Ten West Campus, and One Le Grand in McKinley West; One Fintech and Two Fintech in Iloilo Business Park; and Davao Finance Center in Davao Park District.
Under the deal, MREIT will issue 926.16 million shares to Megaworld in exchange for the six properties.
On Monday, Megaworld shares rose by 0.49% to P2.05 each, while GERI stocks last traded at 58 centavos on Nov. 27. MREIT shares declined by 1.89% to P13.48 each. — Revin Mikhael D. Ochave