SMDC defers development of former military camp in QC

SM Development Corp. (SMDC), a listed property firm owned by retail magnate Henry Sy, has deferred the development of the five-hectare Camp Bago Bantay project, a former military complex in Quezon City.

SMDC vice-chairman and chief executive officer Henry Sy Jr. said the development of the Camp Bago Bantay property located behind SM City North near Mindanao Avenue in Quezon City will be delayed pending finalization of the masterplan for the project. The original plan was to develop a residential condominium building.

Sy said the project will now include the construction of a commercial center in addition to the residential condominium project dubbed NorthPointe Residences.

The change in plan was due to the clamor for more commercial establishments in the area.

The property was acquired by the Sy family in early 2004 from the Bases Conversion Development Authority for P695 million.

Aside from this, SMDC is also building a condotel in Baguio City dubbed Baguio Residences. The project, in joint venture with the Government Service Insurance System, is envisioned to be a condotel, servicing residents and visitors of the summer capital.

SMDC targets residential properties near SM shopping malls. It is also considering ventures in tourism and entertainment to enhance mall operations.

Another project is the Hacienda Looc, a residential and beach resort community located in Nasugbu, Batangas. The first phase shall house a beach resort, a golf course, and residential communities.

To continue growing, SMDC continues to be on the lookout for projects that will deliver better returns to its shareholders.

SMDC reported a 45 percent jump in its net income last year to P523.49 million from only P361.29 million in 2003. Total revenues grew 76.9 percent to P725.36 million from only P410.1 million, mainly coming from investment operations and from property sales.

Gain on sale of real estate amounted to P213.16 million or more than six times the previous year’s P35.31 million.

SMDC was formed in 1974 as a closed-end investment company. Previously named as Ayala Fund, Inc., it changed its business name to SM Fund, Inc. after the SM Group of Companies took major ownership in March 1986.

The change of the company’s name to what it is today also reflects its new thrust of property development.