Megaworld allots initial P2.5B for Iloilo mixed-use complex

MANILA, Philippines - Megaworld Corp. is spending an initial P2.5 billion over a two-year period to develop the old 54-hectare airport in Iloilo into a mixed-use complex.

In a disclosure to the Philippine Stock Exchange, Megaworld said the money would be used to develop the road network, build Richmonde Hotel Iloilo and Richmonde Tower, as well as two more office buildings catering to the business process (BPO) outsourcing industry.

Megaworld acquired the property from the government in 2007 for P1.2 billion in cash.

The first retail component of the project, Festive Walk, is targeted for completion in the latter part of 2012, after which Megaworld is set to invest more to bankroll the development until 2020. The two-kilometer retail and dining strip of Festive Walk is expected to become the next hangout for Iloilo’s youth and a vital tourist spot.

The 12-story Richmonde Hotel Iloilo will house 90 guest rooms, ranging from superior rooms to junior suites. It would be the third project of Megaworld under this hotel brand. The hotel is expected to cater to businessmen and tourists.

Megaworld chairman and chief executive officer Andrew Tan said the project affirms the group’s strong confidence in Iloilo and the entire Western Visayas region.

“The Iloilo Business Park is an important component of the BPO triangle I am envisioning that will make the Philippines an exciting and thriving BPO destination worldwide,” Tan said.

“The Iloilo Business Park marks the second leg of our BPO triangle after our two cyberparks in Metro Manila, with the final leg to be launched in the next few years. Together, these will give BPO investors strong prospects not just based on location but the human resource component as well,” Tan added.

With its strong work-play-learn components, Megaworld is projecting that Iloilo Business Park will fill more than 24,000 seats for the BPO sector, whereas its retail component will infuse more than 200,000 square meters of space for the commercial sector.

Megaworld expects to help create about 40,000 new jobs within Iloilo City, thus helping spur up the local economy.

The Richmonde Tower will occupy the second to sixth floors of the hotel, offering more than 9,000 square meters of prime office space for BPO locators. Both projects are slated for completion within the next two years.

Since the Iloilo Business Park was granted a certification by the Philippine Economic Zone Authority as an information technology (IT) park in January 2010, BPO locators at Richmonde Tower will be entitled to exclusive perks such as income tax holidays, duty-free importation of office equipment and repatriation of earnings, among others.