March 21, 2014

MEG set to develop first township project in Mindanao

Megaworld Corp yesterday disclosed that it is set to spend P15b over five to seven years to develop Davao Park District, its first foray in Mindanao. The project will be developed over an 11-hectare property in Lanang, Davao City which is envisioned to become the city's central business district. MEG said it will initially develop BPO office buildings on the property. It will eventually feature themed residential condominiums, a lifestyle mall and other retail strips, and a school.

Our take: MEG's continued expansion across the country should strengthen its brand, ensure long-term profitability, enable it to take advantage of opportunities in high-growth areas, and render it less vulnerable to tight competition in Metro Manila. We take note that MEG now has various projects in Iloilo City and Cebu City that are in full swing of development. Davao, Iloilo and Cebu are among those that have been identified as New Wave cities because of their bright growth prospects. – WealthSec