SMDC Full-Year 2011 Net Income Up Sharply by 38% to Php4.18 Billion

Residential developer SM Development Corporation (SMDC) posted a consolidated net income of Php4.18 billion in 2011, increasing sharply by 38% from Php3.02 billion in 2010. Of the total, net profit from real estate operations amounted to Php4.04 billion, for a robust 58% growth from Php2.56 billion posted during the same period in 2010. 

Consolidated revenues amounted to Php16.99 billion, higher by 70% year-on-year. EBITDA amounted to Php4.95 billion, for a healthy EBITDA margin of 30%. Net earnings over the past 5-years have grown by an average of 44.6%. SMDC’s revenues from real estate operations during the year soared 79% to Php16.18 billion from Php9.12 billion in 2010. 

The market continues to show strong acceptance of SM Residences and M Place products, backed by a deeper confidence on the company’s proven ability to complete its projects, thereby fueling to a large extent SMDC’s notable 2011 results. The consistent offerings of high-quality and well-designed residential units built by an experienced team composed of the country’s top contractors, engineers, architects, and interior designers also allowed SMDC to gain further traction and brand recognition. For the whole of 2011, SMDC pre-sold 11,726 residential condominium units worth approximately Php26.27 billion. 

Compared to the same period in 2010, the number of units presold increased by 14% and exceeded the company’s sales target of Php23.57 billion by 11%.  Meanwhile, the company’s total assets for the period

reached Php54.77 billion, 25% higher than Php43.70 billion attained in 2010, while its total liabilities stood t Php19.36 billion. SMDC’s stockholders equity amounted to Php35.41 billion, up 38% from Php25.66 billion during the previous year.

SMDC vice chairman and chief executive officer Henry Sy, Jr. said, “SMDC’s strong performance last year confirms the sustainability of its past successes. The company has already become one of the preferred brands in condominium living, thus attaining the necessary momentum to continue delivering positive results. We are also heartened by the firm support of SMDC’s shareholders and clients. Moving forward, SMDC’s commitment lies in responsible governance, sound financial management, and continued innovation to ensure the long-term sustainability of your company.

” In a recent study done by the Advisory and Research Services of Colliers International Philippines, SMDC captured the top spot corresponding to a 24% market share of the more than 25,000 residential condominium units that were sold by the industry during the second half of 2011, when SMDC sold more than 6,000 units. The company has consistently been number one in Colliers’ property surveys since July 2009. 

This trend continues for the entire 2011, during which the Metro Manila condominium market was characterized by strong competition. SMDC currently has 15 residential projects under its SM Residences brand and two projects under the M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.

smdevelopment.com

REAL Estate in Cebu to See Continued Growth in 2012

REAL estate players see continued growth in the industry with the government’s Public-Private-Partnership projects taking off this year.

Filinvest Land Inc. (FLI) AVP area sales head Boler Binamira Jr. said the implementation of the PPP projects will open more business and job opportunities for the sector.

New SM Mega Mall Cebu

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“2012 is another year to reckon with the government spending on infrastructure. This is another indicator for a continued upward growth in real estate,” Binamira said during the Real Estate Economic Forum organized by Realty Options Inc. last Saturday.

He said industry analysts predict a continued growth in the sector over the next 13 years. Although, the projection is a “conservative analysis,” Binamira said it is based on the demand “of the whole spectrum of the industry.”

Economic conditions

The Department of Budget and Management allocated P19.6 billion for Aquino’s PPP programs this year for road, airport and transport developments in Cebu.

In his presentation, Binamira noted that the improving fiscal and economic conditions, rapid increase of dollar remittances and sustained growth of the information
technology (IT) service are among the reasons national players in the sector, such as FLI, Ayala Land, and SM Development Corp. are investing in the real estate industry.

In terms of remittances, Binamira said 30 percent of the total overseas remittances goes to the real estate industry or approximately P600 billion in investments per year.

“This is why (developers) are racing against time to get a chunk of this big market,” he said.

The Bangko Sentral ng Pilipinas recorded $18.8 billion in overseas remittances in 2011, excluding the money sent home through informal channels.

Binamira said education and home acquisition are the top two priorities of overseas Filipino workers (OFWs) when it comes to remittance spending.

He said the growing middle class market is another factor that also drives developers to continue building homes. Binamira cited the growing number of OFWs belonging to the higher income brackets.

“Aside from the domestic helpers, the country also sends a lot of nurses, IT professionals, architects and engineers into the different parts of the world,” he said.

SRP Cebu South Road Properties

He said this also explains the sustained growth of the remittances despite conflicts in other countries.

The optimism in the real estate industry is also because of the huge housing backlog. The Housing and Urban Development Coordinating Council recorded a 4.2 million
shortfall in housing last year.

Housing boom

“If you were to spread the housing backlog, then we see a housing boom for the next five or so years on top of the new demand every year,” Binamira said.

He said much of the demand is for affordable, socialized and middle-income housing.

“We have around 70 percent target market now. This figure will also explain why national players have diversified their housing products,” he said.

REAL Estate in Cebu is to See Continued Growth in 2012!

Binamira said the South Road Property (SRP) development is an important driver of real estate growth in Cebu.

“The SRP development is an important indicator that will propel growth of gross domestic product, migration and employment. It will help catalyze the growth in Cebu, similar to Macau and Singapore,” Binamira said.

He said there were 73 high-rise buildings in Cebu as of last July. Of the number, 55 are already completed while 18 are still under construction.

Cebu will have 88 high-rise buildings by 2015, he said. The number does not include the 11 high-rise buildings to be put up in Mactan Island.

Published in the Sun.Star Cebu newspaper on February 21, 2012

www.filinvest.co

Real estate growth ‘to continue’

REAL estate players see continued growth in the industry with the government’s Public-Private-Partnership projects taking off this year.

Filinvest Land Inc. (FLI) AVP area sales head Boler Binamira Jr. said the implementation of the PPP projects will open more business and job opportunities for the sector.
Have something to report? Tell us in text, photos or videos.

“2012 is another year to reckon with the government spending on infrastructure. This is another indicator for a continued upward growth in real estate,” Binamira said during the Real Estate Economic Forum organized by Realty Options Inc. last Saturday.

He said industry analysts predict a continued growth in the sector over the next 13 years. Although, the projection is a “conservative analysis,” Binamira said it is based on the demand “of the whole spectrum of the industry.”

Economic conditions


The Department of Budget and Management allocated P19.6 billion for Aquino’s PPP programs this year for road, airport and transport developments.

In his presentation, Binamira noted that the improving fiscal and economic conditions, rapid increase of dollar remittances and sustained growth of the information technology (IT) service are among the reasons national players in the sector, such as FLI, Ayala Land, and SM Development Corp. are investing in the real estate industry.

In terms of remittances, Binamira said 30 percent of the total overseas remittances goes to the real estate industry or approximately P600 billion in investments per year.

“This is why (developers) are racing against time to get a chunk of this big market,” he said.
The Bangko Sentral ng Pilipinas recorded $18.8 billion in overseas remittances in 2011, excluding the money sent home through informal channels.

Binamira said education and home acquisition are the top two priorities of overseas Filipino workers (OFWs) when it comes to remittance spending.

He said the growing middle class market is another factor that also drives developers to continue building homes. Binamira cited the growing number of OFWs belonging to the higher income brackets.
“Aside from the domestic helpers, the country also sends a lot of nurses, IT professionals, architects and engineers into the different parts of the world,” he said.

He said this also explains the sustained growth of the remittances despite conflicts in other countries.
The optimism in the real estate industry is also because of the huge housing backlog. The Housing and Urban Development Coordinating Council recorded a 4.2 million
shortfall in housing last year.

Housing boom


“If you were to spread the housing backlog, then we see a housing boom for the next five or so years on top of the new demand every year,” Binamira said.

He said much of the demand is for affordable, socialized and middle-income housing.
“We have around 70 percent target market now. This figure will also explain why national players have diversified their housing products,” he said.

Binamira said the South Road Property (SRP) development is an important driver of real estate growth in Cebu.
“The SRP development is an important indicator that will propel growth of gross domestic product, migration and employment. It will help catalyze the growth in Cebu, similar to Macau and Singapore,” Binamira said.
He said there were 73 high-rise buildings in Cebu as of last July. Of the number, 55 are already completed while 18 are still under construction.

Cebu will have 88 high-rise buildings by 2015, he said. The number does not include the 11 high-rise buildings to be put up in Mactan Island.

www.sunstar.com.ph

A LIFESTYLE OF CONVENIENCE AT CAMELLA NORTHPOINT

CAMELLA Northpoint studio units are your one-room abode that gives you so much more than just a home.

A studio unit is the home of choice for those who want to spend more time on their pursuits – be it business, career, or family. That’s because living in a studio unit is so convenient, you have more time to spend on things that matter to you most.

As a single-room home, your Camella Northpoint studio unit does not require a lengthy time to clean and maintain. You can clean left and right as you go along, as everything is efficiently positioned and easily accessible. With an easy cleanup, maintaining your studio unit is a breeze.

As the only master-planned condo community at the junction of J.P. Laurel Avenue, Bajada and Buhangin Road, Camella Northpoint has the best location for a studio unit in the city.

Situated within the heart of north Davao’s growth area, it is quite close to business establishments, modern offices, shopping outlets, restaurants, bars, supermarkets, schools and universities, department stores, churches, public markets, hospitals, as well as the airport, seaport, and public transport.

If you work, study or do business within city limits, Camella Northpoint's location is excellent for you as you will be living within close proximity to your workplace, business, or school. No more early morning rush or anxiety over traffic congestion as your travel to your destination will be short and convenient.

What's more, you can even detour to your favorite coffee shop to grab a hot cup and sandwich, or even read the freshest news from the newspapers in one of the many nearby coffee shops.

After a day's toil at work, school, or managing your business, it's another brief travel going home to Camella Northpoint. When you get to your studio unit, just kick off your shoes and settle down on your comfy couch to relax and while away your time watching TV, playing games, cuddling up with your loved ones, or enjoying the great view outside your window.

When the nightlife beckons to you, it’s just another quick trip to the many bars, restaurants, movie houses, and watering holes in hotels, malls, and entertainment areas in the city. Within a five-kilometer radius, you can jaunt off to the many hotspots of Davao found at the Abreeza Mall, Damosa Gateway, Victoria Plaza, Gaisano Mall, the restaurant row along Torres Street, or even the quaint, homegrown establishments at the Rizal Promenade, Habana Compound, and along the streets of Legaspi, Mabini, and Torres.

Or you can simply choose to stay home and take advantage of the luxurious facilities and amenities of Camella Northpoint. Stride over to the clubhouse, the stately Wakefield Manor, and lounge away at multi-purpose hall or at the cabanas beside the pool.

Or melt away those stresses by buffing it up at the fitness gym or diving into the wellness pool and lose yourself knifing through its salinated water for an invigorating lap. Better still, share laughter with family or friends while having a barbecue at the clubhouse grill pits.

You can also choose to walk around the manicured landscape, pocket gardens, playground, and park, and take in the fresh scent of Caribbean pine trees growing all around you. Camella Northpoint has hundreds of these imported all-weather pines growing all over the condo property, providing a cool, green, and refreshing ambiance.

This charmed lifestyle is yours for the taking once you move in to your Camella Northpoint studio unit, as it gives you all the single-space convenience and freedom you need to enjoy a balance between work, leisure, and a full, active social life.

The newest premier address in the city, Camella Northpoint is a British colonial-themed condo development of masterplan developer Camella Davao, subsidiary of the country’s largest homebuilder, Vista Land & Lifescapes.


www.camellahomes.net

Tom says SRP is Cebu’s gateway to progress

THE South Road Properties (SRP) is the gateway to the development of Cebu’s economy and its youth, said Rep. Tomas Osmeña of Cebu City’s south district.

The congressman, who pushed for the reclamation project two decades before, repeated his opposition to the plans of Cebu City Mayor Michael Rama to sell the lots to raise funds for Cebu City’s budget.

“The SRP is not just another piece of real estate project. It has gone beyond that. It is for the development of Cebu’s economy and our youth,” said Osmeña in a speech to the Association of Barangay Councils (ABC) yesterday.

He said new sales could wait until the 30-hectare SM project is complete. Once completed, Osmeña said SRP lot prices are expected to go up to P40,000 per sq. meter just like those at AsiaTown IT Park.

He said the SRP is even better than the IT park because it has less traffic, better peace and order and is located beside the sea.

Osmeña said he wanted to attain his vision of making Cebu City globally competitive and at par with Manila, Hong Kong and Singapore.

He said infrastructure and programs would soon be available at the SRP to make this happen.

Osmeña cited the five-hectare SRP lot donated to the University of the Philippines for use as a school offering post-graduate courses.

Osmeña said he wanted future workers of call centers and other establishments that would rise in SRP to get their masters degrees there.

He said 95 to 98 percent of call centers in Cebu are in Cebu City, whcih accounts for the city’s economic growth.

Osmeña said he wanted to expand the city’s scholarship program to reach more high school graduates and even those who stopped schooling. At present, the city trants P10,000 to high school graduates to enroll in a college of their choice. “It is the job of the city to prepare its students to be globally competitive,” he said.

But in order to do this, SRP lot prices have to go up and Osmeña said this would happen upon completion of the SM development project. /Chief of Reporters Doris C. Bongca

cebudailynews.wordpress.com

Eton plans Sentosa-like development in Cebu

MANILA, Philippines - Listed real estate firm Eton Properties Philippines Inc. is considering the acquisition and development of a 35-hectare beach property known as Coral Reef in Mactan Island, Cebu into a high-end mixed-used project inspired by Sentosa Island in Singapore.

In an interview with reporters, Eton president Danilo Ignacio tagged the plan as a “priority” project. The move comes as Eton sets to launch new projects, most recently its first luxury condominium in Eton Centris in Quezon City called Ascent.

Eton’s plan to develop the Mactan property also marks its first concrete step to diversify into tourism.

Based on earlier news reports, Coral Reef is owned by Eton affiliate Philippine National Bank (PNB). Both companies are controlled by billionaire Lucio C. Tan.

The said property is about three times the size of the nearby Shangri-La Mactan Resort & Spa, in terms of land area.

“We want to make this into a very high-end development,” Ignacio said. Eton, he noted, has been approached by international firms, including a Singapore-based group, for possible management contracts.

“It will be inspired by Sentosa Island,” Ignacio added, referring to the popular island resort in Singapore featuring high-end hotels, a theme park, casinos and shopping outlets.

International investors in several instances had expressed their interest to develop the Coral Reef property, but no deal materialized, according to previous reports. The said property was foreclosed by PNB in 2005 after its original owners were unable to meet their obligations, according to reports.

Ignacio, meanwhile, said Eton expects to comply with the Philippine Stock Exchange’s minimum public ownership requirement of 10 percent by the deadline set at the end of this year. Eton has public float of 5.6 percent.

The company is also continuing the development of its 12-hectare Eton Centris mixed-use project in Quezon City with the construction of Ascent. The three-tower condominium units will be sold from P2.9 million to P11 million.

Eton recently reported that first quarter net income rose 7.4 percent to P199 million on revenues that grew to P946 million, up 2.6 percent.

Eton shares were unchanged at P3.30 each on Tuesday’s close

www.abs-cbnnews.com

Rise to the Top

Now a preferred business hub, Cebu has come a long way from the day Portuguese explorer Ferdinand Magellan set foot on the island. Even before the Spanish came to the so-called Queen City of the South, Cebu was already a bustling trading port, where Chinese traders parked their wares in exchange for honey, wood, gold, and spices.

Today, the presence of various developments in the city have practically made Cebu synonymous with business. Gordon Joseph, Cebu Business Club president, credits much of Cebu's success to a strong entrepreneurial spirit.

"Cebuanos have remained relatively self-sufficient and have long understood that the national government's focus has never been south of Luzon," said Mr. Joseph in an email. "Cebuanos have had decades, if not centuries, to carve out their own business and political destinies."

Cebu's foreign direct investment (FDI) strategy, he also said, was simple. "Cebu created an FDI product, such as export processing zones and tourism, out of nothing, almost out of sheer bravura and confidence—another Cebuano trait that has worked to Cebu's advantage."

Mr. Joseph credits Joel Yu, an outsourcing specialist and one of the architects of the Cebu export processing zones, as one of the main men who put Cebu on the map by setting up the necessary infrastructure, through a well-managed Cebu Investments Promotions Center. "He is the right man for the job," said Mr. Joseph.

The city's growth as a thriving business center has also banked on tourism, perhaps Cebu's biggest draw. Marketing its educated workforce and upgrading its airport to international status has also done wonders for the Cebu economy.

"[The strategy's] message was that it was more fun to do business in Cebu," said Mr. Joseph, adding that tourism is a low-hanging fruit that has a huge impact on both the local and national economies. "The strategy worked, and Cebu boomed almost overnight."

Several industries—real estate, business process outsourcing, shipping, furniture, light manufacturing, and knowledge process outsourcing—have since found a home in perhaps the Philippines' fastest-growing metropolis. Mr. Joseph said that the city must continue to focus on these industries.

Despite its successes, though, Cebu is still riddled with problems that every emerging city has to deal with as it grows. The lack of a comprehensive database, for one, undermines Cebu's potential to be more attractive as a business destination to investors. At a Sun.Star Economic Forum held in 2010, Cebu leaders pointed out that while government agencies like the Department of Trade and Industry pool data per region, there is still a need to build a one-stop source that focuses on the economy of the Cebu province itself.


A database would provide the necessary numbers—such as GDP—that local and foreign investors need to decide whether Cebu is a good destination for their businesses. By listing only registered businesses in the city, it would also help both companies and customers avoid fly-by-night firms.

There have been talks of putting up a Cebu Information Bureau with the help of government arms such as the National Statistics Office and the National Economic Development Authority, but the project seems to be put on hold for now.

Cebu's infrastructure itself also has to keep up with the city's growth. "Cebu must sustain and revive its vision and seriously plan for its future," said Mr. Joseph. "We must keep the momentum going and remember that there is competition."

A master plan for turning the province into a "smart city" called Mega Cebu is in the works. A newly-formed Metro Cebu Development Coordinating Board (MCDCB), chaired by Governor Gwen Garcia with Cebu City Mayor Michael Rama and Bobby Aboitiz of the Ramon Aboitiz Foundation—will be in charge of seeing to this goal.

The mayors of the 13 LGUs involved are also part of the board. The private sector, meanwhile, is represented by members of the Cebu Chamber of Commerce, the Mandaue Chamber of Commerce, the Filipino-Chinese Chamber of Commerce, the Cebu Leads Foundation, and the Cebu Business Club.

"This is the first time in the history of Cebu that the public and private sectors have coalesced to bring Cebu back on track to sustainable and inclusive growth," said Mr. Joseph, himself an MCDCB member.

While the brand of personality-oriented politics in the country may make cooperation among different areas difficult, the goal of a more cohesive Cebu seems to be not that far off. "Turf war politics in Cebu can be counter-productive, but we are very confident this initiative will succeed in uniting all major political factions toward a common goal: a renewed, master-planned, modern Mega Cebu composed of 13 independent, but cooperating LGUs," said Mr. Joseph.

The business club president has the same optimism for the future of Cebu as a growing business destination. "[Cebu may not surpass Manila] in terms of size, but [it can] in terms of sustainability, efficiency, and productivity," he said. "These will in turn feed toward the continuing success of its niche industries."

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