Megaworld gets SEC nod to raise capital

MANILA, Philippines - Megaworld Corp. obtained the Securities and Exchange Commission’s nod to raise its capitalization to P40.2 billion from P30.2 billion.

The P10-billion capital hike comprises 10 billion shares with a par value of P1 per share.

Tan’s holding firm Alliance Global Group Inc. is subscribing to 2.5 billion shares out of the increase in capital  at P4.29 per share, representing a premium of five percent over Megaworld’s 30-day volume weighted average price.

AGI’s additional investment in Megaworld shows its confidence in the real estate industry which is seen to sustain its growth amid  a robust economy.

The new capital will be used by Megaworld for its projects, acquisition of land, investments and general corporate purposes.

Megaworld has scaled up its investment commitment to the 72-hectare Ilolilo Business Park over a 10-year period. The project, its biggest outside Metro Manila, will involve the development of luxury residential condominiums, state-of-the-art BPO office towers, a lifestyle mall, a boutique hotel and commercial district, the 1.1 kilometer Festive Walk commercial and retail strip, and a convention center.

The company is also undertaking the development of the P20-billion Mactan Newton, its biggest township  so far in Metro Cebu.  The project has been declared a special economic zone by President Aquino, allowing locators to enjoy various privileges such as tax incentives and holidays.

In the pipeline is a P35-billion township development called Woodside City near Eastwood City along C-5 in Pasig.

The  firm’s net leasable area for office space is seen to reach more than half a million square meters by yearend with the completion of towers 3 and 4 of McKinley Hill Science Club, the Venice Corporate Center and towers A, B and C of 8 Campus Place Tower.