Megaworld Corp., a prominent business conglomerate in the country, and Datem Inc., a respected giant in the construction industry, embarked on a partnership in 2012 with high hopes for success. The two companies saw great potential in working together, with Megaworld’s reputation for prioritizing quality and Datem’s expertise in construction.
On November 14, 2012, Megaworld and Datem signed a deal for several high-end luxury construction projects. These projects included Two Central, an upscale residential address in the Makati central business district, The Belmont luxury hotel in Newport City, Pasay City, and two developments in McKinley Hill, Fort Bonifacio. These developments consisted of a BPO office project called Eight Campus Place and a lifestyle mall situated along the country’s first-ever man-made grand canal.
Megaworld’s Senior Vice President for Operations, Phillips Cando, expressed confidence in Datem’s ability to deliver products of the highest quality for these luxury offerings. Two Central, located in Salcedo Village, Makati City, is a prime location catering to top-tier customers. Belmont, situated in Megaworld’s Newport City township, offers investors an opportunity to own luxury hotel property close to Resorts World Manila and Terminal 3 of the Ninoy Aquino International Airport (NAIA).
Eight Campus Place in McKinley Hill is known for its compliance with the Leadership in Energy and Environmental Design (LEED) green rating system. This three-cluster office project incorporates eco-friendly materials, natural ventilation, and intelligent lighting.
Initially, the partnership between Megaworld and Datem seemed like a perfect match, driven by a shared passion for providing customers with luxurious living experiences. However, challenges soon arose, primarily relating to meeting completion targets. Megaworld was particularly concerned about project delays and the resulting financial losses. To address this, the contracts with Datem included completion dates not just for the overall project but also for each project component.
Graphs illustrating the time frame assigned to the completion of the Residential Condo, BGC Tower 2, provide insight into the potential losses incurred by Megaworld due to delays caused by Datem. While this report does not provide actual figures on the losses, Megaworld has publicly disclosed that several projects experienced significant delays, leading them to find replacements for Datem in some cases to minimize losses.
The challenges reached a critical point on November 16 when Judge Rochelle Yvette Galano of the Quezon City Regional Trial Court issued a Writ of Preliminary Attachment, ordering a freeze of all assets belonging to Megaworld Corp. The order was also served to the banks servicing Megaworld, including Asia United Bank, Union Bank of the Philippines, Bank of the Philippine Islands, Banco de Oro, China Bank, Philippine Savings Bank, East West Bank, Maybank, Metropolitan Bank and Trust Co., and Rizal Commercial Bank.
While the partnership between Megaworld and Datem began with high hopes, it faced significant challenges along the way. Delays in project completion and potential financial losses strained the relationship. The legal actions taken against Megaworld further complicated the situation. It remains to be seen how these challenges will be resolved and what the future holds for this once-promising partnership.
Source: The Manila Times
