Friday, July 31, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE HIGH-end property unit of the SM group is hoping to close the year with better profits as demand for luxury living in themed community Tagaytay Highlands remains robust.
Highlands Prime, Inc. President Antonio A. Henson told reporters at the sidelines of the firm’s annual stockholders’ meeting yesterday that sales would reach P1 billion this year, up from last year’s P834 million.
Mr. Henson did not say how much the company expects to earn in profits but said net income this year would be "much higher" than last year’s P183.7 million.
"The higher revenues will come mostly from the four projects that they will launch later this year. Sales continue to pick up," he said.
Among these projects are phase two of the Woodridge Place, which will offer three- and four-bedroom condominium units; phase two of the Horizon in Tagaytay Midlands, which will house two- to three-bedroom townhouses; Il Piazze at Milago, an Italian-style complex that overlooks Taal Volcano, and the Cliff at Hillside, a mountain lodge-type condominium development.
"[Our newly acquired property] in Canlubang will also be a significant contributor to our profits this year," Mr. Henson said.
The company has allotted P2.5 billion in spending over the next two years.
Around 40% of the amount will be used for the high-end property developer’s new 342-hectare property in Canlubang, Laguna, which Mr. Henson said would complement the Tagaytay Highlands and Midlands developments.
Highlands Prime is also looking at launching a project in Canlubang before the year ends. Unlike the Tagaytay Highlands and Midlands projects usually sold to second-home buyers, Mr. Henson said the firm wants to tap first-time homeowners for the Canlubang lot, which will be a 10- to 15-year masterplanned project.
"If this turns out to be successful, we might look into that market in the future. Right now, we are scouting for new properties," Mr. Henson said.
Highlands Prime wants the Canlubang development to be an "eco-friendly" place complete with amenities, similar to the Tagaytay Higlands projects.
Shares in the company did not move at P3 apiece yesterday. — Kristine Jane R. Liu
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