By Zinnia B. Dela PeÑa (The Philippine Star) Updated May 12, 2011 12:00 AM
MANILA, Philippines - San Miguel Properties Inc. (SMPI), the real estate development unit of diversifying conglomerate San Miguel Corp., is aggressively building up its presence this year with a programmed capital budget of P5 billion to fund the development of residential towers in San Juan and Makati as well as a hotel and condotel in Aklan.
In a briefing following the company’s annual stockholders meeting yesterday, SMPI president Ramon S. Ang said the company will be more active this year to take advantage of the opportunities in a booming property market.
The project in Makati is a joint venture with the Government Service Insurance System (GSIS) which entails the development of the latter’s 1,766-square meter property for a high-end service apartment, adjacent to Greenbelt.
Ang said the company is planning to develop a budget hotel and condotel and food outlet in Caticlan and Boracay, respectively. It owns a 28-hectare property in the island of Boracay, Aklan, a premiere tourist destination.
He said the San Juan property, which is near Wilson, will offer a total of 1,000 residential units, 200 of which will be devoted to employees.
The first 200 units of the San Juan project, will be offered to employees at P50 per square meter, a significant discount to existing market price of P125 per square meter.
At the same time, Ang said SMPI is looking to offer shares within the year to boost its public float to at least 10 percent or 15 percent in compliance with the local bourse’s rule.
“We will sell shares within the year. It would be a combination of primary and secondary shares,” Ang said.
Ang said the company is also looking to develop a 136-hectare lot in Palawan, which it co-owns with another group. “We own 51 percent of the property but we’re currently in discussions with the other owner or other entities for the joint development of the project,” he said.
Although primarily established to manage its parent company’s landholdings, SMPI diversified into commercial property development in response to market opportunities. Its portfolio of projects include mixed-use developments with economic to middle-income housing as its main thrust, with property leasing, the management of strategic real estate ventures and corporate real estate services as other major projects and services.
One of SMPI’s first vertical projects is San Miguel’s current corporate headquarters, the San Miguel head office complex. Considered a landmark in Metro Manila, this iconic building has served as a catalyst in transforming the area into what is now known as the Ortigas Business District.
Another SMPI project is the San Miguel Properties Centre in Ortigas Center, a 24-story office building which houses other San Miguel subsidiaries and multinational companies in the information technology, banking and support services industries. Other vertical projects include the 808 Building, El Magnifico and EDSA 3 building, all of which are located in the Ortigas area.
SMPI was instrumental in developing San Miguel Village, one of the first exclusive private residential enclaves in Makati. Among SMPI’s completed projects are The Legacy in Las Piñas, Villa de Calamba in Laguna and Primavera Hills/Buenavista Homes in Cebu.
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