Shang Properties to spend P12B for Ortigas project
Upscale property developer Shang Properties expects to spend more than P12 billion to build its 64-story twin-tower project in Ortigas Center that will offer plush residential units atop a mall podium.
In a disclosure to the Philippine Stock Exchange Sunday, the local property development arm of Malaysian-based Kuok group said the One Shangri-La Place retail and residential project would require about P9 billion in capital outlays to build the residential component.
The twin towers will have more than 1,300 condominium units atop a high-end, six-level mall podium that will house about 150 luxury shops and restaurants, marking the expansion of Shang Properties’ mall presence in the Ortigas central business district.
About P3.2 billion of the budget was earmarked for the retail component. The group is also expected to spend an additional P2.4 billion to spruce up the current Shangri-La Plaza mall, carpark building and the 8.6-hectare Shangri-La Place estate.
Target completion date of the mall expansion is 2013 while the upscale residences are expected to be completed in 2014.
In the disclosure, the Kuok group said it remained bullish about business prospects in the Philippines, with work on two other simultaneous projects likewise ongoing—the “ultra-deluxe” Shangri-La at the Fort project and another 62-story residential project in Salcedo Village, Makati City.
The Shangri-La project in Fort Bonifacio will have more than 500 guest rooms, serviced apartments and 97 exclusive luxury residences.
Based on Shang Properties’ closing price of P1.92 a share on Friday, it had a market capitalization of P9.1 billion.
Consolidated net profit for the first six months of this year amounted to P461.8 million against last year’s P457.1 million, based on its latest regulatory filing. The property company generates recurring rental revenue from Shangri-la Plaza, The Enterprise Center and Edsa Shangri-la Hotel.
The newly launched One Shangri-La posted P140.4 million in sales in the first six months, higher by P132.6 million from the same period last year due to an increase in the completion level and sales bookings.
The Kuok group, which traced its roots in Johor Bahru, Malaysia, in 1949 with the trading of rice, sugar and wheat flour, is now one of Asia’s most diversified and dynamic multinational conglomerates.—Doris C. Dumlao
