SM Development income up 11.4% to P139M

SM Development Corp. (SMDC), the property arm of the SM Group of companies, posted a net income of P139 million in the first six months of the year, an increase of 11.4 percent from the previous year’s level of P125 million.

Revenues, however, fell 19 percent to P190 million from P235 million a year ago. Of the total, P65.6 million came from interest on fixed-income investments.

Another P51.2 million came from the sale of investments in marketable securities. Other sources of revenues were real estate sales at P35 million, dividend income of P34 million, and miscellaneous income of P4 million.

SMDC president and chief operating officer Rogelio Cabunag said while bulk of revenues still comes from investment portfolio, this revenue earner will become secondary to rising real estate sales in the years to come.

Cluster 1 of Chateau Elysee, the first property venture of subsidiary SM Synergy Holdings, is ready for occupancy, with a total of 384 units. Cluster 2, which has another 384 units, will be turned over to the owners by February 2006.

The project will have four other clusters surrounding a clubhouse that offers complete amenities such as a swimming pool, jogging trail and a social hall. The clubhouse is set to be completed in September.

About P1.5 billion has been earmarked this year for the Chateau Elysee venture.

Apart from this, SMDC is developing another residential condominium project right across SM City Sta. Mesa. The project, called The Centerpointe Residences, is expected to be launched in November.

SMDC has also forged an agreement with state pension fund Government Service Insurance System for the development of a residential condominium in Baguio City. To be called Baguio Residences, the project is envisioned as a condotel, servicing residents and visitors of the summer capital.