SPI are optimistic about the Philippines’ ‘high-end’ future

PRSEA | Jun 20, 2012 | 

Shang Salcedo: SPI expect units to sell over a three year period.

Manila’s high-end residential market is thriving after Shang Properties Inc’s (SPI) recent success, reported the developer.
After receiving strong market reception to its newly launched Makati condominium project the developer is now optimistic about the outlook of Philippines high-end residential market.
The development is forecasted to return P6 billion (US$142 million) worth of new inventory to the property market.

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SPI chief finance officer, Vicente Formoso said at the company’s annual stockholders’ meeting that the company has witnessed increasing consumer affluence in the country.
“We see that everyday. That’s why we launched a new project Shang Salcedo a few days ago,” he said.
Sales of the new 67-story Shang development are going exceedingly well, confirmed Formoso.
Where the Asian Bank Plaza once stood, 770 residential units will be constructed.
“We expect to be able to sell over a three-year period,” Formoso said, noting that the company would start turning over units to buyers by 2015, reported Inquirer Business.
Besides the EDSA Shangri-La mall, the construction company is developing mixed-use One Shangri-La Place in Ortigas Centre.
Formoso confirmed that for as long as the market is goof, SPI would continue to pursue the residential developments while increasing its recurring income base.
SPI is seeking additional residential projects within the Makati and Bonifacio areas. He confirmed that sites have been identified and negotiations are ongoing. Three major ongoing projects may suspend further SPI projects over the next two years, said Formoso.
Seeing it unnecessary to fund project capital through equity due to the company’s low debt level, Formoso confirmed SPI’s plan to contract a P6.4 billion (US$152 million) bank loan.
The chief financial officer speculated that year-on-year, annual outlook earnings should gross higher as the company accesses more revenues as well as makes progress in the construction of residential projects.
A net profit of P1.1 billion (US$26 million) was made in 2011 from SPI condominium sales. For more information, call us at +639173236123