Shang Properties allots P35.5 B for condos, hotel

MANILA, Philippines - Shang Properties, the real estate development arm of Malaysia-based conglomerate Kuok Group in the Philippines, is spending more than P35.5 billion to develop luxury high-rise residential buildings in Ortigas and Makati and an ultra-deluxe Shangri-La Hotel in Bonifacio Global City.

In a disclosure to the Philippine Stock Exchange yesterday, Shang Properties said the group remains bullish about business prospects in the Philippines with three large-scale projects ongoing.

A big chunk of the programmed capital budget, amounting to P18 billion, was earmarked for the 60-story Shangri-La hotel at the Fort, which will house 577 guestrooms and 97 hotel residences. It will also include the construction of 96 exclusive residential condominium units.

More than P12.5 billion was allotted for One Shangri-La Place, a 64-story twin tower mixed-use project in the Ortigas central business district. The project will have more than 1,300 posh residential units atop a high-end six-level mall podium that will be home to about 150 luxury shops and restaurants.

Target completion date of the mall expansion is 2013 while the upscale residences are slated for completion in 2014.

One Shangri-La Place registered sales of P200.8 million in the nine months ending September 2011.

Meanwhile, the company’s newest project, Shang Salcedo Place, will require about P5 billion in capital outlay. Located at the corners of Buendia, HV Dela Costa and Tordesillas streets in Makati’s Salcedo Village, the 65-story residential project will have over 700 units and is slated for sales launch in the second quarter of the year.

The group has allotted an additional P2 billion to refurbish the existing Shangri-La mall, its carpark building and the Shangri-La estate.

Shang Properties posted a net income of P1.1 billion last year, slightly higher than the P1 billion recorded in 2010.