San Miguel Properties allots P6 billion for 2 projects

MANILA, Philippines - San Miguel Properties Inc. (SMPI), the real estate unit of diversifying conglomerate San Miguel Corp., has earmarked as much as to P6 billion for the development of two new projects in Cavite and Greenbelt, Makati in line with its P5-billion net income target over the next five years.

Alan Cruz, head of SMPI’s real estate development, said the company is now finalizing plans for both projects with construction slated to start this year.

Bulk of the budget, or up to P4 billion, will go to a luxury residential project in joint venture with state pension fund Government Service Insurance System. Located in Legaspi St., Makati City, the still unnamed project will offer a total of 400 units slated for completion in end-2013.

The project, which will rise on a 2,615- square meter property near Greenbelt, will be developed into an upscale serviced apartment and possibly a high-rise residential building.

The other project, which is a new development within Gen. Trias, Cavite, is estimated to cost around P2 billion. Development of the American-inspired gated exclusive community will start next month. Unit prices range from P1.65 million to P2.95 million each.

Half of the company’s total landbank of 4,000 hectares, is located in Cavite.

Cruz said around 30 percent of the total programmed capital budget will be actually spent this year. 

He said plans are still being mapped out on developing properties in Boracay – one near the Caticlan airport and other one adjacent to Shangri-La Hotel. “We’re looking at possible options. No firm plans yet for the Boracay property. We need to revisit our masterplan,” Cruz said.

SMPI treasurer Gil Somblingo said the company is eyeing P1 billion in net profit this year, higher than the P990.11 million reported in 2009. “We hope to hit the P1 billion mark. Hopefully it would grow by P1 billion every year. Our goal is to grow this further to P5 billion in the next five years,” he said.

Some of the company’s completed projects include Buenavista Homes in Cebu, Villa De Calamba in Laguna, The Legacy in Paranaque and Maravilla and Bel-Aldea in Cavite.