SM Group allots P2B for 3 new residential projects

SM Development Corp. (SMDC) is allotting P1.5 billion to P2 billion for the construction of three new residential projects this year to help meet the increasing demand for homes.

With an improved cash position, SMDC chairman Henry Sy Jr. said the company is now in a better position to take a more aggressive stance in the property sector.

SMDC reported a 51 percent jump in its net profit last year to P984 million from P652 million in 2005 on a 66 percent growth in revenues, mainly coming from condominium projects Chateau Elysee and Mezza Residences.

"Coming from a year of breakthroughs and record-breaking performance in 2006, SMDC expects to stay focused on its growth strategies, financial prudence and management savvy. With three new residential property developments coming up, the expectations will be insurmountable," Sy said.

Among the company’s projects include Lindenwood Residences, a residential subdivision located in Susana Heights in Alabang; Berkley Residences (a 30-storey condominium along Katipunan in Quezon City); and Grass Residences (a three-tower condominium in North Edsa).

Julie Jalandoni, assistant vice-president for sales and marketing at SMDC, said Lindenwoods is complete with all the possible amenities and facilities ideal for a family. It is expected to be turned over by the first quarter of 2008.

Berkley, on the other hand, is targetting students, university academic professionals, and upstart families. The units are priced at between P1 million and P4 million.

SMDC president Roger Cabunag said 2006 was a record year fort the company as they benefited from a booming residential property market.

In addition to its real estate operation, SMDC booked gains from sale of marketable securities amounting to P225 million or 126 percent higher from the year ago level. Income from interest and dividends, on the other hand, stood at P203 million

SMDC generated gross profits from real estate of P280 million, three times more than that of the figure posted in 2005. Profits booked mostly came from the Bicutan project with development almost midway towards completion.

Chateau Elysee is a French Mediterranean-inspired ‘condoville’ with six clusters. Each cluster comes with one-, two-, or three-bedroom units with floor areas of 20, 40, and 60 square meters, respectively.

Chateau Elysee is selling a total of 1,527 units for four clusters. Having been launched in late 2006, Mezza Residences is about five percent complete. It will have four 38-storey towers connected by a retail podium. Each of the buildings will have one-, two-, or three-bedroom cuts of 20, 40, and 60 square meters floor space, respectively.

Mezza Residences is selling a total of 2,420 units, and is expected to be completed in three years.