MANILA - Shang Properties Inc., the local property unit of Malaysia’s Kuok Group, will spend P20 billion over the next two years for the construction of upscale residential towers and renovation of its commercial properties.
The listed real estate firm is riding on the property boom by completing existing projects while looking for additional landbank in the metro, a company official said.
“For 2014 to 2015, (capital spending) will be P20 billion,” Shang Properties executive director Wilfred Woo said during the company’s annual stockholders’ meeting.
The huge spending program will support the construction and completion of numerous high-end residential towers, he said.
“We are very optimistic about the real estate market in the Philippines, especially in Metro Manila. There is still some room to go up in prices,” Woo said.
Shang Properties is building the 63-story Rise residential tower and the 67-story Shang Salcedo Place in Makati, the 64-storey One Shangri-La Place in Ortigas Center, and the 62-story Shangri-La at The Fort in Bonifacio Global City.
Shang Properties is also spending P350-P400 million in the next two years to refurbish and upgrade The Enterprise Center in Makati, Woo said. The Enterprise Center office tower is 97 percent leased as of end-2013, up from 86 percent a year ago, allowing the company to boost its income by a quarter to P628 million.
The firm also allotted P1.7 billion for the renovation of the Shangri-La Mall. The upscale mall’s new East Wing increased the shopping center’s net leasable space by 23,912 square meters, of which 89 percent is already occupied as of end-2013.
“Currently, we have excess facility with banks. We don’t need fundraising from shareholders or from issuing stocks,” Woo said.
“Despite our achievements and our healthy financial results, we continue to keep a keen eye on more opportunities, including increasing our landbank, improving our bottom line, as well as enhancing our viability in this intensely competitive industry,” said Shang Properties chairman Edward Kuok Khoon Loong.
Woo said Shang Properties is looking for landbank in Bonifacio Global City, Mandaluyong and Makati area.
In the first quarter, profits of Shang Properties jumped 51 percent to P542.07 million from P358.25 million year ago as gross revenues rose nearly 19 percent to P1.57 billion from P1.32 billion.