Posted on 08:43 PM, May 12, 2010 [ BusinessWorld Online ]
SAN MIGUEL Properties, Inc., the real estate arm of diversified conglomerate San Miguel Corp., plans to launch three residential projects worth as much as P6 billion late this year.
With new projects, the company is looking at breaching the P1-billion revenue mark for the first time this year, executives said yesterday.
“[For our] vertical [development], we are looking at P3 billion to P4 billion [in project cost]. The horizontal [project will] probably [cost] P1 billion to P2 billion,” Gil C. Somblingo, chief of finance and administration at San Miguel Properties, told reporters.
For this year alone, capital spending on two horizontal projects in General Trias, Cavite and one vertical project in Makati will range from P1 billion to P2 billion, said Alan R. Cruz, head of real estate development at San Miguel Properties.
The property developer did not launch any project last year.
One of the horizontal projects is an 82,000-square-meter (sq. m.) “American-style” development in General Trias, San Miguel Properties’ first high-end house and lot project. Prices start at P3 million to P3.5 million, Mr. Somblingo said.
A luxury high-rise project in Legazpi Village in Makati will start construction next month. The 2,615-sq.m. project, which will have 400 units, will be completed in 2013.
Executives said they were looking at more than P1 billion in revenues for 2010, up from P711 million last year.
“Our plan is to cross the P1-billion mark in terms of revenue and hopefully grow every year by over a billion,” Mr. Somblingo said.
The firm’s completed residential developments include low-income subdivisions Buenavista Homes in Cebu and Villa de Calamba in Laguna; middle-income subdivision Primavera Hills in Cebu, Legacy in Parañaque, and Maravilla and Bel-Aldea in General Trias; and high-end subdivision Wedge Woods in the municipality of Silang in Cavite.
San Miguel Properties also leases commercial office spaces in Mandaluyong, Ortigas, and Pasig, and industrial spaces and warehouses in Parañaque, Cavite and South Cotabato.
Mr. Somblingo said one of the future plans of the company is “to build commercial and leasing components” like community malls.
“We continue to support the diversification of San Miguel. One of the growth areas that has been identified is the property sector,” Mr. Cruz said.
San Miguel Properties is also evaluating how to develop a 31-hectare property in Boracay. Parent firm San Miguel last month bought a majority stake in a company that will modernize the Caticlan airport for P2.51 billion.
The San Miguel group has about 4,000 hectares of land.
Profits of San Miguel Properties declined by 17% last year to P977.96 million. Shares in San Miguel Properties, which is 98.45% owned by San Miguel, were last traded on Feb. 8, 2007 at P38.50 each. -- Neil Jerome C. Morales