SMDC allocates P71b for capital expenditures until 2015
By Jenniffer B.
Austria | Posted on Apr. 25, 2013 at 12:01am | 619 views
SM Development Corp., the property unit of conglomerate SM Investments
Corp., allotted P71 billion for capital expenditures in 2013 and the next two
years to drive the company’s expansion, its new president said Wednesday.
Newly appointed SMDC president Jeffrey Lim said in a news briefing
following the annual stockholders’ meeting the company would spend P20 billion
this year, P26 billion in 2014 and P25 billion in 2015.
Lim, who replaced Rosaline Qua as the president of the country’s largest
property developer, will retain his position as chief finance officer.
Lim said of the P20 billion capital spending for 2013, about P13 billion
would be for project development and P7 billion for landbanking.
He said the company might conduct fund-raising activities in the second
half to finance this year’s capital expenditure program.
“My main focus right now is to improve the company’s gross margin and
bottom line,” Lim said.
SMDC posted a net income of P1.4 billion in the first quarter, up 12
percent from the same period last year.
First-quarter revenues from real estate increased 4 percent to P5.9
billion while reservation sales slightly fell to P7 billion.
Meanwhile, SMDC vice chairman and chief executive Henry Sy Jr. said the
company had a landbank of 174 hectares, of which 69 hectares were located in
prime areas in Metro Manila.
Sy said the current landbank could be developed over the next five
SMDC plans to launch three to four projects and expand three existing
developments this year. These new projects will bring 13,000 units to the
market compared to 7,000 condominium units launched in 2012.
The new projects this year are Trees Residences and Grass
phase 2 in Quezon City, Shore Residences at the Mall of Asia complex and Rich
Residences in Mandaluyong City.
SMDC will also put up expansion towers at Wind Residences, Field
Residences and Grace Residences. SMDC currently has 15 ongoing
residential condominium projects all over Metro Manila, with the exception of
Wind Residences in Tagaytay.
Link : http://manilastandardtoday.com/2013/04/25/smdc-allocates-p71b-for-capital-expenditures-until-2015/