Posted on June 19, 2012 09:47:37 PM [
BusinessWorld Online ]
UPSCALE DEVELOPER Shang Properties,
Inc. is looking to borrow some P6 billion to partially fund the ongoing
construction of its retail and residential projects this year, an official
yesterday said.
“We are currently negotiating with
various banks to take on a long-term bank loan, maybe in the range of P6
billion,” Wilfred Woo, Shang Properties board director and executive assistant
to the chairman, told reporters following the company’s annual stockholders’
meeting yesterday.
He declined to identify the banks the
company was talking to as the transaction’s terms were still being discussed.
In a separate interview, Vicente P.
Formoso, Shang Properties chief finance officer and treasurer, said the loan
was likely to amount to a maximum of P6.4 billion.
The loan will be used to fund the
construction residential condominiums One Shangri-La Place, Shang Salcedo
Place, and the redevelopment of the company’s upscale flagship mall Shangri-La
Plaza, Mr. Woo noted.
“We should be able to finalize
something within the next couple of months,” Mr. Woo added.
Shang Properties is looking to spend
roughly P12.5 billion to build the 64-storey, twin tower One Shangri-La Place;
P1.8 billion to renovate and expand Shangri-La Plaza; and P5 billion for the
64-storey Shang Salcedo Place, situated on the old Asian Plaza Property
formerly owned by Phinma Corp., according to earlier reports.
Further, it is also allotting P18
billion for the 60-storey Shangri-La at the Fort, which will have 577 rooms
upon completion in late 2014.
This comes amid the company’s
optimistic outlook for the rest of the year, especially for its niche upscale
market.
“[The full-year outlook] is good. Our
sales are continuing, and the profitability is improving. That is why we
continue to invest in the local property market,” Mr. Formoso said.
“[Net income] should be better than
last year,” he added, while declining to cite specific targets.
Moving forward, Shang Properties said
it is scouting for possible properties in the high-growth districts of Makati
City and Fort Bonifacio for future developments.
“We [would] like to acquire one or two
more pieces of land there. We are looking and talking to various people
already,” Mr. Woo said, noting that these planned developments will likely be
high-rise residential projects.
“As long as the market is good, we
will continue to pursue our residential business,” Mr. Formoso said further. --
Franz Jonathan G. de la Fuente
______________________________________________________________
