Megaworld taps BDO Capital as advisor

Megaworld Corp., an upscale property developer controlled by businessman Andrew Tan, has tapped BDO Capital & Investment Corp. as financial advisor for its planned issuance of preferred shares.

The company told the Philippine Stock Exchange that its board approved the reclassification of 60 million unissued common shares into voting, cumulative, non-participating, non-convertible and non-redeemable preferred shares.

The preferred shares may be issued in one or more series as may be determined by the board, it added.

Megaworld recently raised P10.8 billion from a stock rights offering last month.

Bulk of the sales proceeds or P4 billion will be used for the development of the hotel, retail and office components of Cityplace, Megaworld’s first project in Manila’s Chinatown district.

About P3 billion has been earmarked for landbanking activities, P2 billion for working capital requirements and the remaining P1 billion for the continued expansion of its business process outsourcing office space in Eastwood, Libis in Quezon City.

Megaworld is expecting a net income of P1.9 billion in 2006 or an increase of 66 percent from P1.17 billion the previous year. It forecasts net income to grow further to P2.88 billion this year.

The company is one of the leaders in the residential condominium and business process outsourcing (BPO) office segments of the real estate market.

Megaworld has emerged as the biggest developer of townships in prime locations in Metro Manila. These are large-scale, mixed-use communities that integrate residential, commercial, educational/training, leisure and entertainment components.

Megaworld’s ongoing township projects include Eastwood City in Quezon City; Forbes Town Center and McKinley Hill in Fort Bonifacio, Taguig City; Newport City in Villamor, Pasay City; Manhattan Garden City in Araneta Center, Quezon City; and Cityplace in Manila.