SMDC allots P18 B to fasttrack condo projects

MANILA, Philippines - SM Development Corp. (SMDC), the residential arm of mall and banking conglomerate SM Investments Corp. (SMIC), is fasttracking the expansion of its condominium offerings in the metropolis next year.

SMDC will spend as much as P18 billion next year as it launches four new residential projects to cater to continuously growing demand, a top company executive said.

“We have to continue to look for opportunities for the enlarged [property] entity,” SMDC president Jeffrey C. Lim told reporters.

“We will continue with our programs in terms of launching projects for SMDC and putting up business process outsourcing (BPO) buildings,” Lim said.

Specifically, SMDC will launch four new projects and start selling two new phases for existing developments next year. This year, the residential builder offered two new projects and launched new phases for two existing developments.

Lim said SMDC will offer 11,000 new residential units next year, up from 10,000 this year.

“As you know, SMDC developments are all in Metro Manila and in prime locations. So we are seeing continuous demand for the projects that we have been doing that’s why we are positive and we will continue to launch new projects,” Lim said.

SMDC’s Shore Residences, launched in October, already sold around P2.3 billion worth of units, he said.

SMDC has 14 ongoing residential condominium projects all over Metro Manila, with the exception of Wind Residences in Tagaytay.

In January to September, this year, SMDC‘s consolidated net income was flat at P3.27 billion while revenues from real estate sales fell 5.7 percent to P15.2 billion from P16.1 billion a year ago, reflecting both the timing of new project and expansion launches this year, as well as a high base effect.

Meanwhile, parent firm SMIC said it is still hoping to bag the P1.72-billion single ticketing system project for the Metro Rail Transit and the Light Rail Transit.

“With no cost to the government to build and modernize the ticketing system and a one-time concession fee of P1.088 billion to be paid to the government unconditionally, we believe that our proposal is most advantageous to the government and the riding public,” said Norman T. Pe, senior vice president of Penta Capital Investment Corp.

The SM consortium, composed of SMIC, BDO Capital and Investment Corp., Advanced Card Systems Ltd. and Penta Capital, is one of the three bidders in last week’s auction.

The tandem of conglomerate Ayala Corp. and infrastructure giant Metro Pacific Investments Corp. submitted a bid of P1,088,103,900 for the AFCS, followed by SM consortium’s P1.088 billion while Comworks-Berjaya Consortium submitted a bid of P2.050 billion.

“SM, the country’s largest retail chain, will be able to maximize the potential of this innovation through the wide retail acceptance and other applications,” said Denny Wong, chairman of Advanced Card Systems Ltd. of Hong Kong.