Megaworld expects reservation sales to reach P15B next year

Megaworld Corp. expects its reservation sales to reach P15 billion by the end of 2007 with its newly-launched Homelite financing program offering a fixed 11-percent interest on a 25-year loan.

The program is in partnership with Security Bank Corp., one of the country’s fastest growing universal banks with a total network of 114 branches nationwide.

"Homelite is the answer to an acute need for a truly affordable and viable home financing facility that will benefit most first-time buyers as well as those who want to invest in property without unduly straining their sources," said Megaworld executive director Kingson Sian.

Security Bank president and chief executive officer Alberto Villarosa, for his part, said he is very optimistic this program will continue to go a long way as it allows Megaworld’s customers access to longer term and lower rate financing.

The bank is allotting P7 billion in funds for this program.

Sian said the program will initially be available to buyers of Megaworld’s Manhattan Garden City project at the Araneta Center in Quezon City.

He said customers who want a shorter term can also avail of Homelite 10, which charges 8.5-percent interest per year fixed for 10 years and Homelite 15, which sets a 9.75-percent interest on a 15-year loan.

Customers have the option not to make any downpayment or low downpayment schemes.

Sian is confident that "Megaworld will have the distinct advantage of being the first mover in the market to carry this particular financing program exclusively for its residential projects."

He said the financing program is also expected to boost sales due to the new attractive financing schemes offered.

With Homelite, Megaworld expects revenues to rise to P26 billion by end-2007, P15 billion of which will come from reservation sales.

Megaworld is looking at ending the year with real estate sales of P6.16 billion, mainly coming from its residential condominium projects in McKinley Hill, Forbes Town Center in Fort Bonifacio, Taguig City, and Eastwood City in Libis, Quezon City.

In the nine months ending September this year, real estate sales already reached P4.32 billion while total revenues amounted to P6.44 billion

Megaworld is eyeing a net profit of P1.9 billion by the end of this year from only P1.17 billion in 2005. The figure is expected to increase further to P2.88 billion in 2007.

Rental income is also forecast to rise by 37 percent to P956.29 million from the projected 2006 figure of P698.29 million due to escalation and new leases booked during the year.