SM Development posts 24.2% profit hike to P1.2B

SM Development Corp. (SMDC), the property development unit of the family of retail tycoon Henry Sy, reported a 24.2 percent rise in net profit last year to P1.2 billion on robust sales of its residential projects.

In a financial report filed at the Philippine Stock Exchange, SMDC said consolidated revenues jumped 91 percent to P2.7 billion on sales of over P3.7 billion coming from two of its five ongoing projects — Chateau Elysee in Bicutan, Parañaque City and Mezza Residences in Quezon City.

Gross profits from real estate operations surged 196 percent to P829 million.

SMDC said it still holds marketable securities in its portfolio as it started as an asset management company prior to becoming a full-fledged residential condominium developer.

“Our milestone achievements in 2007 attest to the public’s continued trust and confidence in the company. Our sales sustained the momentum attained in previous years. The projects we have started were received well by the market, “ said SMDC president Roger Cabunag.

He said sales for Chateau Elysee, a French Mediterranean-inspired condoville, increased 61 percent last year to P763.1 million with around 97 precent of the total units already sold. Clusters 1, 2 and 3 had already been completed while development of Cluster 6 is ongoing. The project will have a total of 2,696 units.

Each cluster comes with one, two or three-bedroom units with floor areas of 20, 40, and 60 square meters (sqm), respectively.

Sales for Mezza Residences in Sta. Mesa, on the other hand, amounted to P1.6 billion, SMDC reported.

As of end-2007, Mezza was 50.3 precent complete. Upon full completion, it will have a total of 2,420 units in four 38-story towers connected by a retail podium. It has since pre-sold 80 percent of its units.

Last year, SMDC rolled out three new projects: Lindenwood, Berkeley and Grass Residences.

Lindenwood Residences is a residential subdivision in Muntinlupa which has sold a total of 99 lots while Berkeley Residences is a 35-story condominium building along Katipunan Avenue.

Grass Residences, on the other hand, is a three-tower condominium that will rise on a 3.6-hectare property near SM North EDSA in Quezon City. It will have 5,390 units when completed.