SMDC to step up expansion this year

MANILA, Philippines –  SM Development Corp. (SMDC), the residential development arm of tycoon Henry Sy’s holding firm SM Investments Corp., expects to top 10,000 units this year, surpassing 2010 level.

On the sidelines of SMDC’s grand showroom Thursday night, company vice-chairman and chief executive officer Henry Sy Jr. said they will step up their expansion this year as interest from potential buyers continues to pick up.

For this year, SMDC has lined up four projects – Bicutan, Ortigas, Sta. Mesa, and possibly Makati.

SMDC, the fastest-growing residential developer in Metro Manila, has seen a huge spike in the number of units sold last year to 10,000 from only 4,700 in 2009, mainly driven by an intensified marketing campaign.

Sy said many purchasers, particularly first-time buyers, have turned to the previously less popular affordable housing sector to buy a new home, simply because it is a more practical and inexpensive way to get onto the housing ladder.

SMDC currently has a landbank of over 160 hectares (60 hectares in Metro Manila and 100 hectares outside Metro Manila) and plans to acquire more properties to ensure long-term growth. While the company’s focus will still be in Metro Manila, it is exploring opportunities in Cebu and Davao to reach out to a wider customer base.

Among its projects in the pipeline is Wind Residences, a nine-tower, 20-story condominium building in Tagaytay City with an estimated development cost of P12 billion. The project, which falls under SMDC‘s SM Residences brands, will offer a total of 7,758 units when completed in 2015.

With a portfolio of 14 residential projects, the company has already completed its first high-rise development, Mezza, strategically located in Sta. Mesa, Manila. It is set to turn over to customers the last cluster development of mid-rise project Chateau Elysee in Bicutan within the first half this year.

Also scheduled for turnover this year are Berkeley Residences in the first quarter, Grass Residences Tower 1 in the middle of the year and Field Residences Tower 2 and 3 in the first half and second half this year, respectively.

Sy said plans are also underway to bring its affordable housing brand, MyPlace, to China, where the government has committed to increase the supply of affordable houses for low-income earners.

SMDC has already applied for permits to build apartments in Xiamen and Jinjiang where sister firm SM Prime Holdings Inc. has existing shopping malls.

Earlier reports indicated that the Xiamen building would rise on a two-hectare lot while the Jinjiang apartment would sit on more than four hectares of land.

The MyPlace business model aims to tap a younger market, composed mostly of upwardly mobile young adults who want to experience independent living. Its first project in the country is located in the South Triangle area of Quezon City.

SMDC recently raised P11.7 billion from a stock rights offering of 1.83 billion shares.