MANILA, Philippines - Shang Properties, the local real estate development arm of the Malaysia-based Kuok Group, posted a net income of P827.14 million in the nine months ending September this year, up 24 percent from P667.07 million a year earlier.
In a report to securities regulators, Shang Properties said revenues rose only 3.4 percent to P2.11 billion as condominium sales fell to P395.96 million from P610.55 million a year earlier.
Revenues from condominium projects declined due to fewer units sold and fewer inventories of units from St. Francis Shangrila Place as the project becomes almost fully sold out.
One Shangrila Place, a 64-story twin tower residential project in Ortigas Center, chalked in sales of P200.8 million in the first nine months of the year, up from P173.2 million due to the increase in bookings and completion level.
Atop a high-end six-level mall podium, One Shangrila Place will offer over 1,300 condominium units.
Meanwhile, revenues from leasing operations went up 5.5 percent to P1.33 billion, largely due to rental escalations and sustained growth in sales of tenants on percentage rental structure.
Rental revenue from The Enterprise Center tenants increased by P11.2 million due to higher occupancy.
Shang Properties is spending P12.2 billion to build One Shangrila Place, P9 billion of which will go to the development of the residential component of the project. The balance of P3.2 billion will be used to expand the Shangrila Plaza mall and the carpark building.
Target completion date of the mall expansion is 2013 while the upscale residences are expected to be completed in 2014.