source: businessmirror.com.ph/smdc-sees-expansion-north-or-south-of-metro-manila/
BusinessMirror
by VG Cabuag - January 11, 2015
SM Development Corp. said it will have more launches this year, more than doubling its effort in 2014, as the company said it is also looking at piloting its first horizontal development.
Jeffrey Lim, SMDC president and EVP of SM Prime Holdings Inc.’s told reporters the company will have four to five launches this year for a total of about 12,000 to 14,000 units.
For the year, SMDC will have a capital expenditure of P18 billion, part of SM Prime’s P60- billion capex, he said. The launches are far bigger than last year’s, when it only had two condominium-project launches.
Lim said each unit will sell for P3 million.
“We’re working on horizontal development, but that is still in the planning stages but, hopefully, we can launch one project within the year,” Lim said.
He did not divulge the location of its first horizontal project, since SMDC is still in the final stages of negotiations, but this will be located either “up north or south” of Metro Manila.
“It’s not going to be significant in terms of SMDC’s total number, but we would like to try that,” Lim said.
He said there is demand for the horizontal-project units, especially from overseas Filipino workers, who can afford the lower range of the housing units at about P800,000 to P1.2 million.
“We’re still in the drawing board for that [low-cost brand]. Once we have that, then we can accelerate the plans for the launching,” he said.
On SMDC premier, Lim said its Air project is in Makati City and the location itself called for the project to be sold at a premium.
“We see a lot of demand continuing. In December we were able to book P4 billion of sales. It was not a record high because there was a time we had P5 billion. But being able to get into that kind of range only means there’s a lot of demand, in terms of affordable residential condominium,” Lim said.
SM Prime said it had a 12-percent increase in net income for the third quarter of 2014, from the strong growth in rental revenues of its shopping malls all over the country.
The company said its profit hit P3.7 billion for the period, from P3.3 billion in the previous year, sustaining the 12-percent growth posted in the first half of the year.
This brought its nine-month income to P13.5 billion, also up by 12 percent, while revenues rose to P47.8 billion, an increase of 9 percent year on year. “Our first year as a consolidated property business is proving to be rewarding not only in terms of our strong financial performance. We are now enjoying the scale and the synergy that the whole group brings to the table, which allows us to plan and execute our projects in a manner that will provide greater value and more enhanced lifestyles for our customers.” SM Prime President Hans Sy said.
SM Prime’s rental revenues from retail and commercial space, which accounted for more than half of its business, grew by 11 percent, to P26.4 billion, from P23.8 billion in 2013 in the first nine months of 2014.
BusinessMirror
by VG Cabuag - January 11, 2015
SM Development Corp. said it will have more launches this year, more than doubling its effort in 2014, as the company said it is also looking at piloting its first horizontal development.
Jeffrey Lim, SMDC president and EVP of SM Prime Holdings Inc.’s told reporters the company will have four to five launches this year for a total of about 12,000 to 14,000 units.
For the year, SMDC will have a capital expenditure of P18 billion, part of SM Prime’s P60- billion capex, he said. The launches are far bigger than last year’s, when it only had two condominium-project launches.
Lim said each unit will sell for P3 million.
“We’re working on horizontal development, but that is still in the planning stages but, hopefully, we can launch one project within the year,” Lim said.
He did not divulge the location of its first horizontal project, since SMDC is still in the final stages of negotiations, but this will be located either “up north or south” of Metro Manila.
“It’s not going to be significant in terms of SMDC’s total number, but we would like to try that,” Lim said.
He said there is demand for the horizontal-project units, especially from overseas Filipino workers, who can afford the lower range of the housing units at about P800,000 to P1.2 million.
“We’re still in the drawing board for that [low-cost brand]. Once we have that, then we can accelerate the plans for the launching,” he said.
On SMDC premier, Lim said its Air project is in Makati City and the location itself called for the project to be sold at a premium.
“We see a lot of demand continuing. In December we were able to book P4 billion of sales. It was not a record high because there was a time we had P5 billion. But being able to get into that kind of range only means there’s a lot of demand, in terms of affordable residential condominium,” Lim said.
SM Prime said it had a 12-percent increase in net income for the third quarter of 2014, from the strong growth in rental revenues of its shopping malls all over the country.
The company said its profit hit P3.7 billion for the period, from P3.3 billion in the previous year, sustaining the 12-percent growth posted in the first half of the year.
This brought its nine-month income to P13.5 billion, also up by 12 percent, while revenues rose to P47.8 billion, an increase of 9 percent year on year. “Our first year as a consolidated property business is proving to be rewarding not only in terms of our strong financial performance. We are now enjoying the scale and the synergy that the whole group brings to the table, which allows us to plan and execute our projects in a manner that will provide greater value and more enhanced lifestyles for our customers.” SM Prime President Hans Sy said.
SM Prime’s rental revenues from retail and commercial space, which accounted for more than half of its business, grew by 11 percent, to P26.4 billion, from P23.8 billion in 2013 in the first nine months of 2014.