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By Likha C. Cuevas, Reporter
THE property unit of the SM group
plans to raise more funds through the sale of additional shares this
year to finance its future acquisitions and projects.
Rogelio Cabuñag, SM
Development Corp. (SMDC) president said the company plans to raise
from P1.5 billion to P2 billion in additional capital by the second
half of the year.
“We are considering probably
equity because of the good market in equity. We are considering that
but we don’t know yet. We are still trying to assess because that
would be used for our acquisitions,” Cabuñag said during the
company’s project launch.
These acquisitions would form
part of the company’s land banking, he said, adding the firm is
scouting for properties near the newly opened Hypermart in Pasig.
Cabunag said the company plans to
build residential condominiums near SM malls and other shopping
centers and leverage on the opportunities presented by the group’s
core business.
“Metro Manila is still
basically the area we’ve been looking [for expansion]. That has
always been our strategy. That we’ll build residential units
adjacent to our malls or at least very proximate to our malls,” he
said.
SMDC has already launched
one such condominium in Quezon City called Grass Residences located
near SM North EDSA. In a statement, the company said the three-tower
condominium project will be sold to professionals coming from
provinces north of Metro Manila.
Cabuñag said the company
plans to construct a bridge connecting the condominiums to the mall
and make it convenient for residents to shop.
Residential projects near
SM Fairview and SM Southmall in Las Piñas where the company still
has several hectares of land are also in the pipeline but the
timetable for these has yet to be determined.
SMDC also plans to construct the
Berkley Residences along Katipunan Avenue this year. The 30-story
condominium targets students and university academic professionals
as it is situated near Miriam College, Ateneo de Manila University
and UP Diliman.
Besides Metro Manila, the
company has also ventured to nearby suburban areas. One of these is
the Linden Residences in Susana Heights near Alabang. Lindenwoods is
a residential subdivision that would be turned over by the first
quarter of next year.
SMDC is also finishing two
condominium projects called Chateau Elysee and Mezza Residences.
Cabuñag said the company has accelerated the timetable for the
second phase of the projects due to the high demand for the
residential units.
The higher sales from preselling
homes contributed to SMDC’s revenue growth of 66 percent to P1.4
billion last year. The company said this translated to a net income
rise of 51 percent to P984 million.
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