Housing supermarket, IT park specialist

Megaworld Corp., the developer of the 15-hectare Eastwood City Cyberpark in Libis, Quezon City, seems to be the only company that has survived the property glut relatively unscathed. Analysts forecast net earnings of over P800 million this year against P620 million generated in 2000.

Such upbeat projections stem from the company’s small debt burden. "While we are not completely without borrowings, we try to keep our debt within a manageable level. That’s why we’ve managed to remain profitable," said Cirilo Manlangit, executive vice-president and chairman of the executive committee. "We’re also watching our operating expenses very closely to keep ourselves as efficient as we can."

Right partners

Analysts also credit the company’s knack for choosing the right partners for its projects. "We look at our joint venture projects as something positive. The more partners we have, the more resources are available to us," said Manlangit. Megaworld has gone into joint ventures with corporate giants such as Citibank as well as old established families such as the Rodriguezes, the Yulos and the Madrigals.

Proof of Megaworld’s continued bankability is the forthcoming investment of the International Finance Corp., the private sector investment arm of the World Bank, in Eastwood City. The cyberpark is the first special economic zone for information technology-based companies in the Philippines.

Some of the biggest foreign and local IT companies are located in the cyberpark, among them, Citibank, IBM, eTelecare and BayanTrade.com.

"Apart from the superlative financial incentives, the cyberpark provides investor-locators with value-added services that enhance their competitive advantage in terms of cost efficiencies," said Manlangit. Among these are world-class telecommunication services and utilities as well as an IT education and research center to which cyberpark-based companies can outsource their training requirements at big savings.

The Eastwood Locators Assistance Center takes care of offering value-added services to cyberpark locators. Through partnerships with telecom companies, systems integrators, couriers and various service providers, the center is able to facilitate doing business, making the cyberpark all the more special to investor-locators.

Megaworld simply followed it successful formula for the Petron MegaPlaza in building the IBM Plaza and Citibank Bldg. that now anchor office development in Eastwood City.

Housing

In the housing arena, Megaworld recently completed the Marina Square Residential Suites, a 32-storey luxury condominium in the Manila Bay area. It will soon start development of Greenbelt Radissons in Makati.

Subsidiary, Empire East Land Holdings, Inc. takes care of the middle market for Megaworld. Laguna BelAir has entered the first phase of expansion while development of California Garden Square in Mandaluyong and Greenshills Garden Square are ongoing. Empire East also has a joint venture with the Aboitiz Group, Kingswood Makati.

Another subsidiary handles the low-end market with a development in Gen. Trias, Cavite.

This approach has made Megaworld virtually a housing supermarket with something to offer for home buyers of every need and budget.

What’s next for Megaworld?

"We’re not thinking of diversifying at the moment, considering the current global conditions. We’ll be focusing instead on housing and on the cyberpark," said Manlangit.