By Zinnia B. Dela Peña Updated April 25, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines – Shang Properties Inc. , the real estate development arm of the Kuok Group in the Philippines, reported a 6.9 percent drop in consolidated net income last year to P879.8 million on higher interest expense and forex losses.
In a filing with securities regulators, Shang Properties said consolidated revenues, however, grew 21.6 percent to P3.8 billion due to higher sales of the St. Francis Shangri-La Place.
Sales from St. Francis Shangri-la Place, a luxury residential development of Shang Grand Tower Corp., amounted to P1.9 billion or an increase of 24.3 percent from the year earlier level of P1.5 billion.
Rental income expanded 84.8 percent due to rental escalation and higher rental rate on new tenants, and the acquisition of additional interest in KSA Realty Corp. which resulted to the consolidation of the latter’s assets amounting to P8 billion.
Total cost and expenses, on the other hand, declined to P1.88 billion.
As of end-2008, the group’s total assets increased by P32.2 billion while its bank loans rose by P4.3 billion or 611.7 percent.
Shang Properties earns over P1.5 billion in lease income annually through the Shangri-La Plaza mall in Ortigas Center and the prestigious Enterprise Center in Makati. In 2002, the company expanded its business portfolio and built its first residential project, the P2-billion, 46-story Shang Grand Tower, which was completed in record time, and has since completely sold out.
Following this success, Shang Properties embarked on its second residential project, the P5-billion, twin-tower 60-story St. Francis Shangri-La Place, located within its 8.6-hectare property in Ortigas Center and linked to the five-star EDSA Shangri-La hotel and the Shangri-La Plaza mall via comfortable walkways.
Shang Properties, together with Shangri-La Hotels and Resorts, is developing a deluxe hotel and residential project in Bonifacio Global City in Taguig, slated for completion in 2012.
Other future developments include the expansion of Shangri-La Plaza mall also scheduled within this year.
The company has a landbank of over 500 hectares located in Batangas, Tagaytay, Ca-vite, Mactan and the Bonifacio Global City, earmarked for future development.