Megaworld boosts capex to P65B for 2026

TAN-LED property developer Megaworld Corp. has set a higher capital expenditure (capex) budget of P65 billion for 2026, up from the P50 billion it earmarked for 2025, as it accelerates the development of township projects in key provinces.

In a disclosure to the stock exchange on Wednesday, the company said the spending will cover land acquisition, land banking, and the development of existing projects outside Metro Manila.

Megaworld is set to start land development this year for several key townships, including Ilocandia Coastown in Ilocos Norte, The Upper Central in Cagayan de Oro City, and Nascala Coast in Nasugbu, Batangas.

Last month, the company launched its 37^th township development in the country, located in Negros Occidental.

Megaworld also has ongoing expansions in its residential, office, and retail segments in regional locations such as Bacolod, Iloilo, Pampanga, Cavite, and Palawan.

“We are seeing opportunities ahead, and we look forward to the sustained growth in the office, commercial, hospitality, and tourism sectors,” Megaworld President and Chief Executive Officer Lourdes T. Gutierrez-Alfonso said.

In its residential segment, Megaworld is launching 19 projects valued at P65 billion this year. These projects will be located in Pasig, Taguig, Manila, Ilocos, Cavite, Batangas, Laguna, Palawan, Iloilo, Cebu, and Cagayan de Oro.

“Our residential business remains a strong growth engine, especially as we introduce more pioneering projects that integrate new technologies such as the use of artificial intelligence into our new developments,” Ms. Gutierrez-Alfonso said.

Megaworld is also looking to add 2,000 rooms to its hotel portfolio with the construction of five hotels this year, the company said.

Hotel properties in its pipeline include ArcoVia Hotel in Pasig City; Savoy Hotel Capital Town in San Fernando City, Pampanga; Savoy Hotel Palawan and Paragua Sands in San Vicente, Palawan; and The Kingsford in Bacolod City.

Megaworld said it remains optimistic about the growth of its hospitality portfolio, adding that this supports its goal of reaching more than 9,000 room keys within the next three years.

The property developer’s expanding portfolio is also expected to result in additional asset infusions into its real estate investment trust, MREIT, Inc., it said.

Kevin Andrew L. Tan, president and chief executive officer of parent firm Alliance Global Group, Inc. (AGI), said the group is looking to inject 250,000 square meters (sq.m.) of retail and office assets into MREIT this year.

This is in line with MREIT’s goal of expanding its asset portfolio to one million sq.m. of gross leasable area (GLA) by 2027.

In the first nine months of 2025, Megaworld posted a 14% increase in net income to P17.9 billion, while MREIT’s distributable net income rose by 27% to P2.8 billion in the same period.

At the local bourse on Tuesday, Megaworld shares rose by 1.36% or three centavos to close at P2.23 apiece, while MREIT shares gained 0.14% or two centavos to finish at P13.82 each. — Beatriz Marie D. Cruz