Businessworld -- Sy-led SM Investments
Corp. aims to further grow its property footprint in Tagaytay City with a
new “entertainment center,” a senior official of the company said over
the weekend.
“Adjacent to this land, you can see some
development. It is a six-hectare development attached to this lot, to be
called Tagaytay Sky Ranch,” Jose T. Sio, SM Investments executive
vice-president and chief finance officer, said in an interview on the
sidelines of the Media Nation 9 conference at Taal Vista Hotel, Tagaytay
City last Saturday, when asked about the company’s plans in the area.
“It will be composed of horse-riding [facilities] and other components
like a gazebo, gardens, a Ferris wheel, a few commercial spaces and
restaurants. It will be an entertainment center, almost a city by
itself.
We’re going to have a soft opening by December,” Mr. Sio said.
Tagaytay City, a 6,500-hectare, second-class city in the province of
Cavite, has long been positioned as “one of the major tourist
destinations in the country,” according to its official Web site.
Tourist attractions include historical landmarks, the Japanese Garden,
Tagaytay Highlands, People’s Park in the Sky, as well as Picnic Grove
and Livelihood Complex.
SM Investments currently has three developments in Tagaytay City:
Wind Residences, a residential condominium under SM Development Corp.;
Tagaytay Highlands, an upscale mountainside residential resort under
Highlands Prime, Inc.; and Taal Vista Hotel, formerly known as Taal
Vista Lodge, under SM Hotels and Conventions Corp.
Mr. Sio described the planned Tagaytay Sky Ranch, which will be managed
by SM Hotels and Convention upon its completion, as a potential tourism
attraction.
“We will be complementing Tagaytay Picnic Grove… This is a place that
you simply cannot replace as it is overlooking Taal Volcano,” Mr. Sio
said.
At the same time, Mr. Sio said that there was still room for expansion
at Taal Vista Hotel, whose last renovation in 2008 saw rooms double to
261 from 128, and the addition of a 1,000-seater ballroom.
“We still have space for development here,” Mr. Sio said without elaborating.
SM Investments remains bullish in its outlook for the next three years due to a growing economy.
“It’s ‘all go’ for next three years. It’s all growth -- it will be all
positive for the malls, retail, banking, the property and hotel [units].
Everything will be a go, and I think this is what we also feel about the Philippine economy,” Mr. Sio said.
SM Investments, which plans a record P65-billion capital expenditure
next year, grew its net income by 14% to P16.1 billion as of September
from the P14.2 billion earned in the same nine months last year.
Shares of SM Investments rose by P1.50 or 0.18% to P837.50 apiece yesterday from P836.00 on Friday last week.
Monday, November 26, 2012
Wednesday, August 15, 2012
SM income hits P10.9B, up 13%
MALAYA - SM Investments Corp. (SM Investments) said profit for the first half
of the year reached P10.9 billion, up 13 percent from last year’s P9.6
billion.
“Earnings growth was driven largely by strong earnings growth of residential development, banks and the mall operations. Total revenues grew 14 percent to P105.2 billion from P92 billion as all the core businesses delivered on their sales targets,” SM Investments said.
“EBITDA rose 12 percent to P24.1 billion for an EBITDA margin of 22.8 percent. In the meantime, return on equity is steady at 14 percent,” it added.
The banks continued to provide the largest contribution to SM Investments’ consolidated profit with a 30.9 percent, followed by retail operations with 28.2 percent. Malls came in third with 24.2 percent followed by property development with 16.7 percent.
SM Retail reported a 7.8 percent growth in profit at P2.7 billion from sales growth of 8.3 percent at P73.8 billion. EBITDA was up 11 percent to P4.9 billion for an EBITDA margin of 7 percent. Net margin was steady at 3.7 percent.
The group which consists of a chain of department stores and a separate chain of supermarkets and hypermarkets continued to expand its number of stores nationwide while getting a boost from improved consumer confidence. For the last twelve months, the number of stores increased by 35 of which 2 are department stores, 2 are SM Supermarket, 28 are SaveMore Stores and 7 are SM Hypermarkets. As of end June, SM Retail’s total number of stores reached 183, consisting of 43 department stores, 34 SM Supermarket, 73 SaveMore Stores and 33 SM Hypermarkets.
“The group continues to expand all of its store formats with particular focus on the growth of SaveMore stores which has gained very strong market acceptance. This stand-alone store format which is patterned after a typical neighborhood grocery store offers greater convenience in communities where organized retail is lacking. SaveMore provides fresh food concepts, clean and attractive store layouts, and a highly diverse yet reliable mix of products and services,” SM Investments said.
Mall operation SM Prime Holdings, Inc. posted a 15 percent increase in net income at P4.9 billion from P4.3 billion last year. Revenues reached P14.6 billion, up 15 percent year-on-year. EBITDA for the period grew 12 percent to P9.71 billion for an EBITDA margin of 67 percent. Better growth resulted from the improved performance of the existing malls both in the Philippines and China with same store sales growing by 8 percent, boosted further by the opening of new malls in 2010 and 2011.
The four malls in China posted a hefty 30 percent growth in revenues to P1.3 billion and contributed 9 percent to consolidated revenues. In terms of net income, SM China showed a growth of 52 percent to P321 million, for a net margin of 25 percent and a 7 percent contribution to SM Prime’s consolidated net income. The average occupancy rate for the four malls in China is now at 95 percent.
After opening SM City General Santos in South Cotabato last week, SM Prime now has 45 malls strategically located in the Philippines with a total gross floor area of 5.5 million square meters. In China, SM Prime’s malls are located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou with a total gross floor area of over 600,000 square meters. Earlier this year, SM Prime opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. For the rest of 2012, SM Prime is scheduled to open SM City Lanang in Davao City, and SM Chongqing in China.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
“Earnings growth was driven largely by strong earnings growth of residential development, banks and the mall operations. Total revenues grew 14 percent to P105.2 billion from P92 billion as all the core businesses delivered on their sales targets,” SM Investments said.
“EBITDA rose 12 percent to P24.1 billion for an EBITDA margin of 22.8 percent. In the meantime, return on equity is steady at 14 percent,” it added.
The banks continued to provide the largest contribution to SM Investments’ consolidated profit with a 30.9 percent, followed by retail operations with 28.2 percent. Malls came in third with 24.2 percent followed by property development with 16.7 percent.
SM Retail reported a 7.8 percent growth in profit at P2.7 billion from sales growth of 8.3 percent at P73.8 billion. EBITDA was up 11 percent to P4.9 billion for an EBITDA margin of 7 percent. Net margin was steady at 3.7 percent.
The group which consists of a chain of department stores and a separate chain of supermarkets and hypermarkets continued to expand its number of stores nationwide while getting a boost from improved consumer confidence. For the last twelve months, the number of stores increased by 35 of which 2 are department stores, 2 are SM Supermarket, 28 are SaveMore Stores and 7 are SM Hypermarkets. As of end June, SM Retail’s total number of stores reached 183, consisting of 43 department stores, 34 SM Supermarket, 73 SaveMore Stores and 33 SM Hypermarkets.
“The group continues to expand all of its store formats with particular focus on the growth of SaveMore stores which has gained very strong market acceptance. This stand-alone store format which is patterned after a typical neighborhood grocery store offers greater convenience in communities where organized retail is lacking. SaveMore provides fresh food concepts, clean and attractive store layouts, and a highly diverse yet reliable mix of products and services,” SM Investments said.
Mall operation SM Prime Holdings, Inc. posted a 15 percent increase in net income at P4.9 billion from P4.3 billion last year. Revenues reached P14.6 billion, up 15 percent year-on-year. EBITDA for the period grew 12 percent to P9.71 billion for an EBITDA margin of 67 percent. Better growth resulted from the improved performance of the existing malls both in the Philippines and China with same store sales growing by 8 percent, boosted further by the opening of new malls in 2010 and 2011.
The four malls in China posted a hefty 30 percent growth in revenues to P1.3 billion and contributed 9 percent to consolidated revenues. In terms of net income, SM China showed a growth of 52 percent to P321 million, for a net margin of 25 percent and a 7 percent contribution to SM Prime’s consolidated net income. The average occupancy rate for the four malls in China is now at 95 percent.
After opening SM City General Santos in South Cotabato last week, SM Prime now has 45 malls strategically located in the Philippines with a total gross floor area of 5.5 million square meters. In China, SM Prime’s malls are located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou with a total gross floor area of over 600,000 square meters. Earlier this year, SM Prime opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. For the rest of 2012, SM Prime is scheduled to open SM City Lanang in Davao City, and SM Chongqing in China.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
Philippine Developer To Build 18 Malls in China As Economy Grows
iREALTYTimes - A shopping mall developer owned by Phillippine magnate Henry Sy plans
on spending $63 million pesos--about $1.5 billion USD--to build a slew
of shopping malls and residential structures in China.
SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.
The expansion would not only sustain company growth, a spokesperson for the company said, but increase it--thanks to China's blooming market and consumer spending powers.
"I am quite positive that we can accelerate our earnings growth," Hans Sy, son of Henry, told media.
New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world's fastest-growing major economy.
Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Phillippines too, since many Phillipino work in China and Hong Kong, sending most of their salary back home.
Other developers are joining suit. CapitaLand, Southeast Asia's biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.
"We want to still acquire more shopping mall projects," CEO Liew Mun Leong told the Post. "That will be a large part of our appetite."
The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.
Meanwhile, SM Prime will also build more malls in its native country. But that will come after the Chinese expansion--and the money it will bring.
SM Prime said it would fund the expansion with a mix of cash from operations and debt.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.
The expansion would not only sustain company growth, a spokesperson for the company said, but increase it--thanks to China's blooming market and consumer spending powers.
"I am quite positive that we can accelerate our earnings growth," Hans Sy, son of Henry, told media.
New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world's fastest-growing major economy.
Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Phillippines too, since many Phillipino work in China and Hong Kong, sending most of their salary back home.
Other developers are joining suit. CapitaLand, Southeast Asia's biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.
"We want to still acquire more shopping mall projects," CEO Liew Mun Leong told the Post. "That will be a large part of our appetite."
The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.
Meanwhile, SM Prime will also build more malls in its native country. But that will come after the Chinese expansion--and the money it will bring.
SM Prime said it would fund the expansion with a mix of cash from operations and debt.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
Wednesday, August 8, 2012
Highlands nets P16.4m
Manila Standard - Leisure property developer Highlands Prime Inc. is back on the black,
posting a net income in the first half of the year on higher revenues
from real estate sales.
Highlands Prime said in a financial report filed with the Philippine Stock Exchange that net profit reached P16.4 million, a reversal from a P27.8-million loss year-on-year.
Highlands Prime said total realized revenues rose 61 percent to P254.6 million from P158 million on year.
“The realized revenues for the current period were better due to the contribution of the residential lot projects, which accounted for 58 percent of the total realized revenues. Condominium and log cabin projects contributed 42 percent of the total,” Highlands Prime said.
The property company has two projects under construction, namely Woodridge Place phase 2 and Sierra Lago.
Woodbridge Place phase 2 is a condominium project at Tagaytay Highlands, while Sierra Lago is a subdivision development at Tagaytay Midlands.
Highlands Prime said in a financial report filed with the Philippine Stock Exchange that net profit reached P16.4 million, a reversal from a P27.8-million loss year-on-year.
Highlands Prime said total realized revenues rose 61 percent to P254.6 million from P158 million on year.
“The realized revenues for the current period were better due to the contribution of the residential lot projects, which accounted for 58 percent of the total realized revenues. Condominium and log cabin projects contributed 42 percent of the total,” Highlands Prime said.
The property company has two projects under construction, namely Woodridge Place phase 2 and Sierra Lago.
Woodbridge Place phase 2 is a condominium project at Tagaytay Highlands, while Sierra Lago is a subdivision development at Tagaytay Midlands.
For more details on Woodbridge Place, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308
/ 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Sunday, August 5, 2012
SM Prime completes 2012 fund-raising
MALL OPERATOR SM Prime Holdings, Inc. has completed its financing requirements for the year amounting to P21 billion, signaling its preparation to spend a further P63 billion in the next three years for expansion here and overseas.
“2012 [fund-raising is] done already. For next year, we will know by
[the first quarter] how much we need to raise,” Jeffrey C. Lim, SM Prime
executive vice-president and chief financial officer, told BusinessWorld in a text message.
Previously, SM Prime said it was allocating P21 billion for capital
expenditure this year, of which P14 billion is intended to fund projects
in the Philippines while P7 billion will be funneled for those in
China.
The capex was supposed to be sourced from a mix of debt and internally-generated funds.
Last May, the firm announced that it had raised P7.5 billion in fresh
funds from the issuance of fixed-rate and floating-rate notes, which
were reportedly snapped up by institutional investors.
SM Prime told the stock exchange last week that moving forward, it was
earmarking an estimated P63 billion to bankroll the construction of four
to five malls in the Philippines, and one mall in China.
“We will raise funding yearly for this,” Mr. Lim said.
SM Prime, however, has yet to determine whether it will tap the equities or bond market for future capex requirements.
“We will have to wait until next year,” Mr. Lim said.
SM Prime was incorporated in 1994 to take charge of the SM group’s
commercial shopping centers and related businesses. This year, SM Prime
aims to have a mall portfolio of 46 Philippine malls and five China
malls, with an estimated combined gross floor area of 6.3 million square
meters.
The Sy-led company is eyeing as much as seven new properties in China
for mall expansions as the firm exploits higher consumer spending there.
SM Prime hiked its January-to-June net income by 15.22% to P4.92 billion
due to its new malls and robust sales, earlier reports show.
Shares of SM Prime dropped by 1.85% to P13.80 last Friday from P14.06 at its previous close.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
Belle profit down 11%
MANILA, Philippines—Property and gaming firm Belle Corp. posted an
11-percent year-on-year decline in its six-month net profit to P90.5
million due to lower real estate revenues.
Gross revenue declined by 38 percent to P222.6 million year on year in the first semester as it booked lower revenues from the sale of real estate and club shares (P192.11 million compared to P338.87 million last year). Gross profit also fell by 34 percent to P141.9 million.
The company has been devoting significant resources to development activities connected with its integrated resort project in Parañaque City, which is targeted for opening next year, the company told the Philippine Stock Exchange on Friday.
Total operating expenses increased by 11 percent to P112 million in the first half due to higher administrative expenses.
The company’s equitized net earnings from associated companies rose by 22 percent to P74.3 million from a year ago mainly due to the contribution of Pacific Online Systems Corp., where it owns a 35-percent stake.
Pacific Online—which leases online equipment to the Philippine Charity Sweepstakes Office for lottery operations in Visayas and Mindanao—contributed P67 million in equitized earnings to Belle. This was lower than its P69.3 million contribution a year ago.
Belle, which is part of the main-share PSEi, has a market capitalization of P51.74 billion based on its closing price of P4.90 per share on Friday.
Gross revenue declined by 38 percent to P222.6 million year on year in the first semester as it booked lower revenues from the sale of real estate and club shares (P192.11 million compared to P338.87 million last year). Gross profit also fell by 34 percent to P141.9 million.
The company has been devoting significant resources to development activities connected with its integrated resort project in Parañaque City, which is targeted for opening next year, the company told the Philippine Stock Exchange on Friday.
Total operating expenses increased by 11 percent to P112 million in the first half due to higher administrative expenses.
The company’s equitized net earnings from associated companies rose by 22 percent to P74.3 million from a year ago mainly due to the contribution of Pacific Online Systems Corp., where it owns a 35-percent stake.
Pacific Online—which leases online equipment to the Philippine Charity Sweepstakes Office for lottery operations in Visayas and Mindanao—contributed P67 million in equitized earnings to Belle. This was lower than its P69.3 million contribution a year ago.
Belle, which is part of the main-share PSEi, has a market capitalization of P51.74 billion based on its closing price of P4.90 per share on Friday.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Friday, August 3, 2012
Green Residences to rise on Taft
Soon to be one of the tallest buildings along Taft Avenue, Green
Residences is the ideal home for students looking for a well-secured
place complete with five-star amenities to help them focus more on their
studies.
The 50-storey tower features a Sky Lounge that houses a study hall, swimming pool, game room, gym, and function rooms aside from a commercial area where residents can easily go for their daily necessities. It is conveniently located near major schools like De La Salle University (DLSU) and St. Scholastica’s College.
“Aside from offering a secure environment, we have built Green Residences to be a place that balances both study and leisure for students,” said SMDC’s Vice chairman and chief executive officer Henry Sy, Jr.
One of the biggest real estate developers in the country, SMDC is known for offering five-star homes in prime locations. Green Residences is within walking distance to two LRT stations—Quirino and Vito Cruz. Green Residences will soon rise along Taft avenue across De La Salle University and near other universities around the area.
The 50-storey tower features a Sky Lounge that houses a study hall, swimming pool, game room, gym, and function rooms aside from a commercial area where residents can easily go for their daily necessities. It is conveniently located near major schools like De La Salle University (DLSU) and St. Scholastica’s College.
“Aside from offering a secure environment, we have built Green Residences to be a place that balances both study and leisure for students,” said SMDC’s Vice chairman and chief executive officer Henry Sy, Jr.
One of the biggest real estate developers in the country, SMDC is known for offering five-star homes in prime locations. Green Residences is within walking distance to two LRT stations—Quirino and Vito Cruz. Green Residences will soon rise along Taft avenue across De La Salle University and near other universities around the area.
For more details on Green Residences, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308
/ 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
SMDC net income up 38% to P2.7B in H1
Residential property developer SM Development Corp. grew its
first-semester consolidated net income by 38 percent year on year to
P2.7 billion on the back of a strong expansion in real estate revenues.
Six-month revenues from real estate rose by 73.6 percent to P11.9 billion while net income from real estate, not counting other income, went up by 31.8 percent to P2.51 billion over the same period.
In a disclosure to the Philippine Stock Exchange, SMDC’s first-half home sales jumped by 85 percent to P19.8 billion year on year. Correspondingly, the number of units sold rose sharply by 72 percent to 8,007 from only 4,655 units during same period last year.
“We are highly gratified by the warm response that the market continues to give to SMDC’s products. Our homebuyers encourage all of us to work even harder to match their expectations or even exceed them in terms of quality, lifestyle and convenience. SMDC’s residential condominiums are being designed and developed to cater to the Filipino’s growing need for privacy, sophistication and greater access to retail and home-related services which offer greater convenience and time for families to live a more balanced life,” SMDC chief executive officer Henry Sy Jr. said in a press statement.
Case flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 32.6 percent year on year to P2.97 billion, translating to an Ebitda margin of 25 percent.
Most of the units sold by SMDC in the first half were from Shell Residences located at Mall of Asia Complex, Green Residences along Taft Avenue near De La Salle University, Jazz Residences in Makati, Light Residences on EDSA near Boni Avenue., Sun Residences in Quezon City’s Welcome Rotunda, Wind Residences in Tagaytay and Grass Residences beside SM North EDSA.
At present, SMDC has a total of 16 projects under construction. It plans to break ground for five more projects in the second half of the year.
For more details on SMDC projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.
Six-month revenues from real estate rose by 73.6 percent to P11.9 billion while net income from real estate, not counting other income, went up by 31.8 percent to P2.51 billion over the same period.
In a disclosure to the Philippine Stock Exchange, SMDC’s first-half home sales jumped by 85 percent to P19.8 billion year on year. Correspondingly, the number of units sold rose sharply by 72 percent to 8,007 from only 4,655 units during same period last year.
“We are highly gratified by the warm response that the market continues to give to SMDC’s products. Our homebuyers encourage all of us to work even harder to match their expectations or even exceed them in terms of quality, lifestyle and convenience. SMDC’s residential condominiums are being designed and developed to cater to the Filipino’s growing need for privacy, sophistication and greater access to retail and home-related services which offer greater convenience and time for families to live a more balanced life,” SMDC chief executive officer Henry Sy Jr. said in a press statement.
Case flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 32.6 percent year on year to P2.97 billion, translating to an Ebitda margin of 25 percent.
Most of the units sold by SMDC in the first half were from Shell Residences located at Mall of Asia Complex, Green Residences along Taft Avenue near De La Salle University, Jazz Residences in Makati, Light Residences on EDSA near Boni Avenue., Sun Residences in Quezon City’s Welcome Rotunda, Wind Residences in Tagaytay and Grass Residences beside SM North EDSA.
At present, SMDC has a total of 16 projects under construction. It plans to break ground for five more projects in the second half of the year.
For more details on SMDC projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Sunday, July 22, 2012
Coming full circle
INQUIRER - It is good to be “home.”
After moving from one job to another—a teacher, creative director and a banking executive—Claravall now serves as senior vice president for marketing of SM Development Corp., the property firm of the SM Group.
Claravall tells the Inquirer that she first worked with the SM Group when siblings Hans and Tessie Sy were scouting for an advertising agency for its first mall, which she had then dubbed as SM City North Edsa. After her advertising stint, she had moved to the banking industry, where she stayed for more than 21 years.
“I’ve transitioned in my life so much. I used to be a teacher, then I went to advertising as a creative director and then I went into banking before I came to SM. In a way, I had my roots in SM since I worked for the very first mall in North Edsa, giving it the SM City name,” Claravall recalls.
Claravall believes that transition bodes well for an individual who, like her, is looking to “translate all the things that you learned through the years to something totally different like retail, which is very dynamic.”
“And of course, SM, as a brand, is really something that one would want to work for because I think it’s a brand that has pervaded people’s lives,” she added.
The former copywriter turned banker first entered the SM Group in 2008, but it was only a year after that she was asked to help handle SMDC, which, at that time, was a relatively new player in the local real estate scene.
No easy feat
Claravall then thought of this assignment as a challenge to grow the brand—a very good marketing experience for her to be able to translate and leverage on the branding of SM Group as a whole in order to develop SMDC.
But it was no easy feat, she admits.
“SMDC was really a fledgling company because if you look at its ranking in this industry years ago, in 2006, we were only No. 13 and in 2007, we were No. 8. It was only in the second half of 2009 up to 2010 that SMDC finally became No. 1,” she explains.
“In a way, when you look at an industry that is populated by a hundred developers, it is no mean feat to be able to sustain the No. 1 position from the second half of 2009 up to the end of 2011. And we are hoping to maintain our position in the market,” Claravall says.
SMDC’s rise to the top, according to Claravall, was propelled mainly by the vision of Henry T. Sy Jr., who believes in helping make every individual’s life better.
‘The good guys’
“Our CEO, Henry T. Sy Jr., was the one who thought of ‘the good guys.’ That was his idea. He believes that we have to start somewhere and that in this business, and as the good guys, we have to be able to give you the best possible home that you signed up for,” Claravall explains.
As the good guys, SMDC has committed to give the Filipino market an abode that is affordable, strategically located, highly accessible, near commercial areas, offices, hospitals and other places of interest. These property projects also come with a promise of having the best amenities such as Wi-Fi, study rooms, pools and showcase five-star-hotel-like lobbies.
“SMDC promises to deliver products that are of quality, affordable and convenient. As the good guys we will try as much as possible to give our buyers the best deal and we will always try to meet our homebuyers halfway in cases where confusion arises,” Claravall says.
“We also made the market realize that they can afford a home and that it is easy to own one. We are putting quality homes within their reach and they don’t have to settle for something that’s just ok because what we are giving them is a good thing,” she adds.
Like a courtship
Claravall likens the SMDC buying experience to a courtship: as suitors would normally do everything to win the object of their affections, SMDC would similarly aim to give all that is right and due its customers, knowing very well that every peso they spend comes from a hard-earned pay.
Despite the successes being enjoyed by SMDC, Claravall admits that the company is still quite far from completely achieving its goal, adding that a lot of work still needs to be done.
“SMDC will be here for the long haul as we believe there is still much to be done. And we intend to accomplish that just by doing more of the things that we’ve actually been doing already. We will continue to listen to our customers and from there find out what else we can do to make this a good deal for them,” Claravall says.
SMDC currently has 21 ongoing projects, of which five are ready for occupancy. It has also lined up several more projects on the pipeline.
“SMDC has arrived, and we are lucky we have a CEO who has a foresight and a vision that enables his employees to do the things he believes fall under that vision. I think we have showed our competitors that this is a viable industry and as a player, we have shook things up,” she adds.
Currently, SMDC continues to strive being the “good guy” by raising the bar for the whole Philippine real estate industry.
For Nita Claravall, working now for one of her most esteemed clients back in the early days when she was still an advertising executive, feels as if she has come full circle.
After moving from one job to another—a teacher, creative director and a banking executive—Claravall now serves as senior vice president for marketing of SM Development Corp., the property firm of the SM Group.
Claravall tells the Inquirer that she first worked with the SM Group when siblings Hans and Tessie Sy were scouting for an advertising agency for its first mall, which she had then dubbed as SM City North Edsa. After her advertising stint, she had moved to the banking industry, where she stayed for more than 21 years.
“I’ve transitioned in my life so much. I used to be a teacher, then I went to advertising as a creative director and then I went into banking before I came to SM. In a way, I had my roots in SM since I worked for the very first mall in North Edsa, giving it the SM City name,” Claravall recalls.
CLARAVALL
Claravall believes that transition bodes well for an individual who, like her, is looking to “translate all the things that you learned through the years to something totally different like retail, which is very dynamic.”
“And of course, SM, as a brand, is really something that one would want to work for because I think it’s a brand that has pervaded people’s lives,” she added.
The former copywriter turned banker first entered the SM Group in 2008, but it was only a year after that she was asked to help handle SMDC, which, at that time, was a relatively new player in the local real estate scene.
No easy feat
Claravall then thought of this assignment as a challenge to grow the brand—a very good marketing experience for her to be able to translate and leverage on the branding of SM Group as a whole in order to develop SMDC.
But it was no easy feat, she admits.
“SMDC was really a fledgling company because if you look at its ranking in this industry years ago, in 2006, we were only No. 13 and in 2007, we were No. 8. It was only in the second half of 2009 up to 2010 that SMDC finally became No. 1,” she explains.
SMDC projects boast five-star hotel-like lobbies.
“In a way, when you look at an industry that is populated by a hundred developers, it is no mean feat to be able to sustain the No. 1 position from the second half of 2009 up to the end of 2011. And we are hoping to maintain our position in the market,” Claravall says.
SMDC’s rise to the top, according to Claravall, was propelled mainly by the vision of Henry T. Sy Jr., who believes in helping make every individual’s life better.
‘The good guys’
“Our CEO, Henry T. Sy Jr., was the one who thought of ‘the good guys.’ That was his idea. He believes that we have to start somewhere and that in this business, and as the good guys, we have to be able to give you the best possible home that you signed up for,” Claravall explains.
ALL SMDC projects are equipped with the best amenities.
As the good guys, SMDC has committed to give the Filipino market an abode that is affordable, strategically located, highly accessible, near commercial areas, offices, hospitals and other places of interest. These property projects also come with a promise of having the best amenities such as Wi-Fi, study rooms, pools and showcase five-star-hotel-like lobbies.
“SMDC promises to deliver products that are of quality, affordable and convenient. As the good guys we will try as much as possible to give our buyers the best deal and we will always try to meet our homebuyers halfway in cases where confusion arises,” Claravall says.
“We also made the market realize that they can afford a home and that it is easy to own one. We are putting quality homes within their reach and they don’t have to settle for something that’s just ok because what we are giving them is a good thing,” she adds.
Like a courtship
Claravall likens the SMDC buying experience to a courtship: as suitors would normally do everything to win the object of their affections, SMDC would similarly aim to give all that is right and due its customers, knowing very well that every peso they spend comes from a hard-earned pay.
Despite the successes being enjoyed by SMDC, Claravall admits that the company is still quite far from completely achieving its goal, adding that a lot of work still needs to be done.
“SMDC will be here for the long haul as we believe there is still much to be done. And we intend to accomplish that just by doing more of the things that we’ve actually been doing already. We will continue to listen to our customers and from there find out what else we can do to make this a good deal for them,” Claravall says.
SMDC currently has 21 ongoing projects, of which five are ready for occupancy. It has also lined up several more projects on the pipeline.
“SMDC has arrived, and we are lucky we have a CEO who has a foresight and a vision that enables his employees to do the things he believes fall under that vision. I think we have showed our competitors that this is a viable industry and as a player, we have shook things up,” she adds.
Currently, SMDC continues to strive being the “good guy” by raising the bar for the whole Philippine real estate industry.
For more details on SM residences and condo projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308
/ 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Monday, July 9, 2012
Macau gaming firm Melco teams with Philippines’ richest man in $1 billion casino project
Washington Post — Macau
gambling company Melco Crown Entertainment is teaming up with the
Philippines’ richest man to develop a $1 billion casino resort in Manila
in a sign of the industry’s plans for rapid expansion in Asia.
Melco said late Thursday that it would develop the project with three companies controlled by Philippine tycoon Henry Sy. Melco is jointly controlled by Lawrence Ho, who is the son of Macau casino king Stanley Ho, and James Packer, the son of late Australian media magnate Kerry Packer.
Melco has signed an agreement with Sy’s investment holding
company SM Investments Corp., his property developer Belle Corp. and
Belle subsidiary PremiumLeisure and Amusement Inc.
The Philippines’ casino regulator has already issued a provisional gambling license to the group for the casino, which will include a hotel and shopping and entertainment facilities, and will be located in a middle-class suburb on Manila Bay. A regular license will be issued once certain conditions are met.
Melco expects to invest up to $580 million. The Manila project would be the company’s first outside Macau, the world’s most lucrative gambling market, where it operates two casinos and is developing a third.
In Manila, Philippine President Benigno Aquino III’s spokesman said the resort will be a full-service complex that will provide other entertainment apart from a casino.
“It’s not promoting gambling, per se,” spokesman Edwin Lacierda said. “The plan for the entertainment city is more than just gambling.”
Leaders of the Roman Catholic church had earlier spoken out against the project, saying it would promote a “culture of gambling” in the conservative, majority Roman Catholic Philippines.
High-rolling Chinese gamblers have powered Macau’s gambling revenue growth. Last year, the semiautonomous Chinese region raked in $33.5 billion in casino revenue, up 42 percent over the year before and more than five times the amount on the Las Vegas Strip.
Melco said it wanted to expand in the Philippines because the country is a popular tourist destination and close to major sources of tourists including South Korea, Taiwan, Japan and China.
The company said it wanted to “take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seek new travel destinations and experiences.”
Japanese slot machine tycoon Kazuo Okada is also developing a casino resort in Manila.
The Asia-Pacific region will be the world’s fastest growing casino market from 2011 to 2015, according to a report last year by consulting firm PricewaterhouseCoopers, which also forecasts that it will overtake the United States next year to become the world’s biggest market. PWC forecasts that Philippine casino revenues will more than double to $1.2 billion in 2015 from $558 million in 2010.
Melco said late Thursday that it would develop the project with three companies controlled by Philippine tycoon Henry Sy. Melco is jointly controlled by Lawrence Ho, who is the son of Macau casino king Stanley Ho, and James Packer, the son of late Australian media magnate Kerry Packer.
The Philippines’ casino regulator has already issued a provisional gambling license to the group for the casino, which will include a hotel and shopping and entertainment facilities, and will be located in a middle-class suburb on Manila Bay. A regular license will be issued once certain conditions are met.
Melco expects to invest up to $580 million. The Manila project would be the company’s first outside Macau, the world’s most lucrative gambling market, where it operates two casinos and is developing a third.
In Manila, Philippine President Benigno Aquino III’s spokesman said the resort will be a full-service complex that will provide other entertainment apart from a casino.
“It’s not promoting gambling, per se,” spokesman Edwin Lacierda said. “The plan for the entertainment city is more than just gambling.”
Leaders of the Roman Catholic church had earlier spoken out against the project, saying it would promote a “culture of gambling” in the conservative, majority Roman Catholic Philippines.
High-rolling Chinese gamblers have powered Macau’s gambling revenue growth. Last year, the semiautonomous Chinese region raked in $33.5 billion in casino revenue, up 42 percent over the year before and more than five times the amount on the Las Vegas Strip.
Melco said it wanted to expand in the Philippines because the country is a popular tourist destination and close to major sources of tourists including South Korea, Taiwan, Japan and China.
The company said it wanted to “take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seek new travel destinations and experiences.”
Japanese slot machine tycoon Kazuo Okada is also developing a casino resort in Manila.
The Asia-Pacific region will be the world’s fastest growing casino market from 2011 to 2015, according to a report last year by consulting firm PricewaterhouseCoopers, which also forecasts that it will overtake the United States next year to become the world’s biggest market. PWC forecasts that Philippine casino revenues will more than double to $1.2 billion in 2015 from $558 million in 2010.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Wednesday, June 20, 2012
Follow Reuters Facebook Twitter RSS YouTube Most Popular Most Shared Kristen Stewart bumps Jolie as highest-paid actress 12:36am IST Long-grumbling Alaska volcano has explosive ash burst 9:09am IST Microsoft's Surface: when the keyboard is key 7:24am IST Deadbeat corporate borrowers? Not in India 2:49pm IST REFILE-Soccer-Euro-Signs that things may be changing for England 4:26pm IST Philippines' SM Investments seeks $355 mln via bond offer
(Reuters) - SM Investments Corp, one of the Philippines' biggest conglomerates, said on Wednesday it was seeking to raise up to 15 billion pesos ($355 million) via the sale of seven- and 10-year retail bonds next week to fund its real estate projects.
The $10-billion conglomerate owned by the country's richest man Henry Sy said in a statement it had set the interest rates at 6.0 percent per annum for the seven-year bonds and 6.9442 percent for the 10-year bonds.
It will initially offer peso-denominated bonds worth 10 billion pesos, with an option to issue an additional 5 billion pesos depending on demand.
The offer will run from June 27 until July 6. Issue date is July 16.
BDO Capital & Investment Corp and First Metro Investment Corp are joint issue managers and bookrunners and will act as lead underwriters together with BPI Capital Corp and China Banking Corp.
The firm owns stakes in property firm SM Development Corp , mall developer SM Prime Holdings Inc, and lenders Banco de Oro Unibank Inc and China Banking Corp.
SM rose 1.1 percent on Wednesday, in line with the market's 1.3 percent rise. The stock has gained about 20 percent this year.
In February, SM raised $250 million via convertible bonds due in 2017 to refinance existing debt and for general expenses.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Saturday, June 16, 2012
Sy's BDO eyes P44-B in Philippines' biggest share sale
RAPPLER - Banco de Oro (BDO), owned by
the Philippines' richest man Henry Sy, is all set for what will be the biggest
share sale in the country as it announces the most important detail of its
planned stock rights offer: the final price.
BDO, the Philippines' top lender by assets, told
public investors on Tuesday, June 5, it will sell 895 million common shares in
a rights offer to investors at P48.60 apiece to raise P43.5 billion ($1.88
billion) -- the biggest ever equity deal in the country.
The final price represents a 25% discount to BDO's
closing price of P65.05 in the local market the same day.
The bank is selling one share for every 3 held by
existing shareholders on record as of June 14. The offer will run from June 18
to 27.
If fully taken up, the sale will surpass the record
$611 million raised by the Gokongweis' budget carrier Cebu Pacific in its
initial public offering (IPO) in October 2010, and the $505 million raised by
taipan George S.K. Ty's GT Capital Holdings IPO in April this year.
BDO has appointed Citigroup, Deutsche Bank and J.P.
Morgan as joint international lead managers and underwriters, while BDO Capital
& Investment Corp. is issue manager and domestic underwriter.
The share offer marks another milestone for Sy's
empire, which started out as small shoe store in Manila and grew to become one
of the large-scale conglomerates with interests in retail, mall, real estate
and banking.
The Sy group plans to use the fresh capital from
BDO's offering for a major undertaking, and one that the bank has spearheaded
in the country -- financing of big-ticket infrastructure projects under the
government's Public-Private Partnership (PPP) scheme.
Capital ratio, PPP
Companies usually turn to rights offers when they
need money and want to raise it immediately. A rights offer is a type of issue
that give shareholders the "rights" to purchase new shares in a
company at a price lower than what the market offers. While troubled companies
are the ones that typically undertake a rights issue, many with clean balance sheets
also use it to fund acquisitions and growth strategies.
In a disclosure to the stock exchange, BDO said its
huge offer "is intended to support BDO's medium-term growth objectives and
is being conducted in anticipation of the more stringent Basel 3 capital requirement
expected to be implemented by the Bangko Sentral ng Pilipinas."
The fresh capital is expected to bring the bank's
capital adequacy ratio above 15% or the level the central bank will be
requiring universal and commercial banks starting January 2014.
More important however is BDO's plan to participate
in the government's PPP program through financing.
Teresita Sy-Coson, the bank's chairman and eldest
child of Sy, said in May they would collaborate with other local financial
institutions in raising a $1-billion fund that will bankroll infrastructure
projects under PPP, the centerpiece of the Aquino government's economic agenda.
The government has lined up a total of 22 PPP projects to be bid out to private
investors this year.
In 2011, BDO led a syndicate of banks that financed
the P11.5-billion construction of the Tarlac-Pangasinan-La Union Expressway, a
major infra project crucial to the growth of Northern Luzon.
BDO is 46% owned by Sy's holding firm, SM Investments
Corp. Around 5% of the bank is held by International Finance Corp, the private
sector arm of the World Bank, and the rest is held by the public.
Now the Philippines' largest bank by assets, BDO
posted a net income of P10.5 billion in 2011, up 19% from 2010, owing to the
24% growth in its loans, which outpaced the industry's average growth of 19%.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
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