Shangri-la Plaza Mall logo (Photo credit: Wikipedia)Entering its third decade as a premier real estate developer, Shang Properties Inc. of Malaysia’s Kuok Group is on the lookout for potential sites it can add to its portfolio as a sign of growing confidence in the Philippine economy.
“Shang Properties is confident about the Philippine’s economic environment and is expanding our land bank for future investments. We remain well-positioned to actively participate in the property development sector,” said company chairman Edward Kuok in his report to shareholders.
Kuok said the company remains committed to be the leading developer and manager of prime properties in the country through product innovation and excellent service.
Milen Treichler, Shang Properties marketing manager, said the company is looking to further expand its presence in Makati, Fort Bonifacio and Ortigas as it aims to capitalize on a resilient, domestic-driven economy and the government’s aggressive pump-priming activities.
The government is boosting spending to a record this year as it seeks to spur the $200 billion economy’s growth rate to as fast as eight percent from about five percent last year.
It also aims to take advantage of historically low interest rates available today, which is seen to further prop up consumer spending.
Shang Properties is constructing three large-scale projects simultaneously —One Shangri-La Place in Ortigas Center, Shangri-La Hotel at the Fort, and the Shang Salcedo Place in Makati — with a combined development cost of P37.3 billion. The amount includes the P1.8 billion earmarked for renovations of the existing Shangri-La mall, its park building and estate.
Bulk of the P37.3 billion or P18 billion will be spent on the Shangri-La Hotel at the Fort, in which the group has a 40 percent stake. The project, in partnership with Hong Kong listed affiliate Shangri-La Asia Ltd. and Alphaland Development Inc., will feature a 577-room Shangri-La Hotel, 97 serviced apartments, and 99 luxurious residential condominium units.
Construction of the two-tower One Shangri-La Place, the group’s largest development to date commenced in October 2009 and has now reached the 10th level. Both towers which will be 64-storys high, offer a total of 1,304 residential units, of which 60 percent have already been sold to date, generating sales revenues of P6.6 billion. The residences are targeted for completion in 2014.
Development cost for the project, which will rise above the six-level Shangri-La Plaza mall expansion, was pegged at P12.5 billion. Slated for opening in 2013, the new mall will be home to over 150 shops and restaurants and two levels of basement parking.
The upscale residences are slated for completion in 2014.
The company has earmarked around P5 billion for the 64-story Shang Salcedo Place, which will rise on 3,045 square meter lot in Salcedo Village. The project will make available a total of 778 units with a total gross floor area of 60,900 square meters. Pre-selling commenced in May 2012.
In the first quarter this year, Shang Properties reported a 48.8 percent growth in net income to P298 million on the back of a 30.6 percent rise in sales.
Condominium sales amounted to P205.3 million, mainly driven by One Shang Place sales.
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