THE HOUSING and Land Use Regulatory Board (HLURB) has stopped SM Development Corp. (SMDC) from selling and advertising its latest condominium project in Pasay City without a permit.
In a cease and desist order, the housing body also prevented the real estate unit of the SM group from collecting amortized payments for Sea Residences at the Mall of Asia Complex in Pasay City.
HLURB Regional Director Jesse A. Obligacion issued the order after SMDC was found to have been selling and advertising its P3-billion project without a permit.
The agency also said the Sy-led company had failed to obtain a certificate of registration for Sea Residences.
"[The company has been issued] a cease and desist order from further selling and advertising projects and from collecting amortization payment from buyers until expressly permitted by [the HLURB]," Mr. Obligacion wrote in the letter.
In an interview last week, SMDC President Rogelio R. Cabunag denied selling the units, but said they would address the matter.
"We are not preselling; we are getting only letters of intent from interested clients," he told BusinessWorld.
"We are going to respond to the HLURB [order]," he added.
The HLURB is a government agency whose responsibilities include issuing development permits and licenses to sell to residential developers. It also monitors land development projects.
Last year, the regulator issued a similar cease and desist order to Century Properties Group for its condominium project Gramercy Residences in Makati City.
In the case of the SM company, the housing regulator issued the notice of violation in June and ordered the company to explain why it should not be fined P30,000.
It also ordered the property firm to submit a status report on sales and reservations made from the project.
Sea Residences is the company’s sixth residential project in Metro Manila and the first of several residential projects that will rise at the SM Mall of Asia.
SMDC earlier said it expects sales to reach P800 million this year from the first of three phases of the six 15-storey towers Sea Residences. The units are scheduled to be turned over to buyers by the second half of 2011.
Aside from Sea Residences, the company has also launched Field Residences, which will rise on a seven-hectare property behind SM City Sucat in Parañaque.
Field Residences will consist of six clusters of 15-storey condominium units with 1,700 units.
Other projects of SMDC include Wind Residences in Tagaytay City, Berkeley Residences along Katipunan Avenue, Grass Residences beside SM North EDSA in Quezon City, Mezza Residences across SM Sta. Mesa in Manila, Chateau Elysee in Parañaque, and Lindenwood residences in Muntinlupa City.
SMDC more than doubled its residential estate revenues to P1.8 billion for the first half. On Friday, shares of SMDC gained 3.77% or 18 centavos to close at P2.20 apiece.
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