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SM Development Corp. (SMDC) announced on Friday that its profit last
year surged as revenues increased by three-fold on robust sales of
its residential condominium units.
In a statement, the middle income-housing arm of
the SM group said its consolidated net income grew by 24.2 percent
to P1.2 billion as total sales jumped 317 percent to P1.9 billion.
This allowed SMDC to book gross profits of P829 million, 196 percent
higher year on year.
Net profit growth was tempered by the absence of
gains from marketable securities, especially equities, since the
year before the firm posted P225 million from these investment
instruments. SMDC blamed the US sub prime mess and subsequent
correction of the local bourse last year to the lack of gains. The
firm said it still holds marketable securities in its portfolio
since it started as an asset management firm before becoming a
condominium developer.
The company’s consolidated revenues jumped by
91 percent to P2.7 billion.
“Our milestone achievements in 2007 attest to
the public’s continued trust and confidence in the company. Our
sales sustained the momentum attained in previous years. The
projects we have started were received well by the market,” Roger
Cabunag, SMDC president, said.
Two of the firm’s five ongoing projects
contributed most to total revenues last year. Sales from Chateau
Elysee were 61 percent more at P763.1 million. SMDC said Clusters 1,
2 and 3 of Chateau Elysee are already complete, with the company
building Cluster 6.
This project is a French Mediterranean-inspired
“condoville” with six clusters, having one-, two-, or
three-bedroom units with floor areas of 20, 40 and 60 square meters,
respectively. SMDC has sold 97 percent of units in the first three
clusters while it pre-sold 37 percent of Cluster 6. The 2,696 units
the project is expected to sell will be completed next year.
A second project, Mezza Residences shored up
P1.6 billion for the company during the same period and it was
halfway finished as of end-December. Upon completion, the 38-story
project will end up with 2,420 units in four towers that will be
connected by a retail podium. Mezza, which is across SM City Sta.
Mesa, will have one-, two-, and three-bedroom units of 20, 40, and
60 square meters. About 80 percent of its units were already
pre-sold.
Last year, SMDC launched Lindenwood Residences,
a subdivision in Muntinlupa which sold 99 lots. It also launched the
35-story Berkeley Residences along Katipunan Avenue in Quezon City.
The project has studio-type, one- and two-bedroom units with sizes
ranging from 19 to 80 square meters. Berkeley has pre-sold 46.7
percent of its units as of end-December.
The three-tower Grass Residences condominium was
also launched last year, which sits on a 3.6-hectare property near
SM North EDSA in Quezon City. The three-phase project will have
5,390 units upon completion.
-- Likha C. Cuevas-Miel
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