Corporate News

Shang Properties to spend P4B on condo project

Posted on June 22, 2011 08:03:48 PM | BREAKING NEWS

SHANG PROPERTIES, Inc., the listed real estate development arm of Malaysia’s Kuok Group, will spend P4 billion for a new residential high-rise project in Makati City, an executive said on Wednesday.

"We have purchased a property in Salcedo Village, which used to be the former Asian Plaza building," Vicente P. Formoso, chief finance officer and treasurer of Shang Properties, told reporters after the company's stockholders' meeting in Mandaluyong City.

The site will be allotted for a 65-storey residential development that will have studio, one-bedroom and two-bedroom units, Mr. Formoso said.

In April, Shang Properties acquired real estate properties of listed Phinma Corp. for P615 million.

"The total investment would be about P4-4.5 billion for this particular project," Mr. Formoso said.

"We are now in the process of demolishing the building and will soon begin excavation by October," he added.

Shang Properties will complete the construction of the 65-storey residential tower in 2014 or 2015. There will also be three levels of basement parking and five levels of podium parking in the project that will be be opened to pre-selling starting early next year.

In the first quarter, earnings attributable to equity holders of Shang Properties grew by 9.6% to P200.2 million in the first quarter from P182.7 million last year.

Its revenues are derived from rentals and condominium sales in One Shangri-La Place and St. Francis Towers while rental income comes from tenants at the Shangri-la Plaza mall and occupants at the Edsa Shangri-la Hotel.

Shares in Shang Properties, a property development, real estate management and investment holding company which was incorporated in 1987 as Shangri-La Properties, Inc., were last traded on June 17 at P1.82 apiece. -- Neil Jerome C. Morales