Megaworld Corporation is allotting P8 billion to P10 billion for capital expenditures this year as it plans to launch five new projects with a sales value of P12 billion.

In an interview after the firm’s annuals stockholders meeting yesterday, Megaworld executive director Kingson Sian said they will launch Two Central in Makati, Tower 3 in Eastwood, Palm Tree in Newport, the phase 2 of Venice, and Morgan Suites this year.

Sian said they remain optimistic of the company's prospects in 2009 although he also expressed reservations for Megaworld's year-on-year performance due to the effects of the current financial crisis.

“In terms of reservation sales it will be slower than last year. But to put it in context, its still going to be a good year. For now, we are still confident because, at the pace we are selling, we should exceed even our 2007 numbers,” Sian explained.

Sian said the first three months of the year saw their reservation sales hit P7 billion, already higher than the P5 billion reservations posted in the same period in 2007. The company posted reservation sales of P24 billion for the entire 2008.

He said that, during a crisis, people “are sometimes nervous” and “try to move back a little bit. But in general we are still happy.

However, the firm still expects to post a higher net income of P4 billion this year from P3.79 billion last year as the growth in rental income will more than compensate for the temporary drop in sales of condominium units.

Sian said rental income from office buildings and commercial outlets is seen to rise from P1.3 billion last year to over P2 billion this year.

He said they also expect to open this year and next year the Marriot Hotel and Maxim Hotel in New Port City, in Pasay, 5-star and 6-star hotels, respectively. An 800-room budget hotel to be called Remington will also be built in Newport City.

These hotels are being built by Travellers International Hotel Group, Inc. which is 50 percent owned by parent company Alliance Global Group and 10 percent by Megaworld. The Genting group of Malaysia owns the remaining 40 percent.

On its own, Megaworld is also building a Richmonde Hotel in Eastwood City, the second Richmonde hotel in Metro Manila. Sian said they are also planning to open a third Richmonde in Manila where they also have an ongoing community project.