Tuesday, 05 October 2010 00:00 [ manilatimes.net ]
The housing arm of the SM Group is aggressively expanding its land holdings as it plans to acquire new properties in seven cities nationwide. SM Development Corp. (SMDC) told the Philippine Stock Exchange that it would spend P2.75 billion out of the P11.68 billion to be raised from its forthcoming stock rights offering to buy land in the cities of Pasig, Quezon, Taguig and Valenzuela.
The property firm is also eyeing areas outside Metro Manila such as Cebu, Davao and Tagaytay.
The bulk, or P8.91 billion of the proceeds from the rights offering will be spent on the construction of 10 residential projects. About P3.13 billion will be used in the fourth quarter this year, while the remaining P5.78 billion will be spent in the second quarter of 2011.
The projects are Sea Residences in Pasay City; Field Residences in Parañaque City; Princeton Residences along Aurora Boulevard, Quezon City; Sun Residences in Welcome Rotonda; Jazz Residences in Makati City; Wind Residences in Tagaytay City; Light Residences in Mandaluyong City; Blue Residences in Loyola Heights, Quezon City; Green Residences in Malate, Manila; and My Place South Triangle in Mother Ignacia Street, Quezon City.
SMDC plans to sell 1.83 billion shares at P6.38 each to existing stockholders next month.
BDO Capital and Investments Corp. has been tapped as the underwriter of the fundraising exercise.
The offer, which will be available to stockholders of record as of October 6, will run from October 18 to 22.
The planned offering is larger than SMDC’s previous rights offering in January, which generated P5 billion for the company.
According to property consultant Colliers International Philippines, the real estate firm was the largest residential developer in Metro Manila during the first semester in terms of number of units sold and value of sales. SMDC’s profit grew by almost a quarter to P1.3 billion in the same period.
Its shares rose from P9.11 on Friday to P9.20 each on Monday.
KRISTA ANGELA M. MONTEALEGRE
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