Philippine property developer Megaworld Corp and its subsidiaries have earmarked P55 billion (US$1.172 billion) for capital spending in 2016 to boost commercial assets.

Real estate tycoon Andrew Tan’s flagship property arm and subsidiaries Global-Estate Resorts (GERI), Empire East Holdings and Suntrust Properties have announced plans to aggressively expand a group-wide rental portfolio.

The company said 75 per cent of the budget will be used for development projects, particularly for the construction of new malls, commercial centers, office buildings and residential projects in townships. The remaining 25 per cent will be used for land acquisition and investment properties.

“This year, we would start developing our new townships in Pasig City, Bacolod and Pampanga while ramping up our office and mall developments across our existing townships. We are bullish on the office and retail sectors because we see a remarkable growth in these businesses,” Megaworld senior VP Jericho Go said in a press statement.

The spending budget this year matches the same level earmarked for 2015.