Kuok property unit breaches P2-B profit mark in 2013

 Economy
Apr 192014
 

MANILA, Philippines – The local property unit of Malaysia’s Kuok Group breached the P2-billion net income level last year on the back of higher sales from its upscale condominium projects.

In a regulatory filing, Shang Properties Inc. said its consolidated net income hit P2.01 billion, up 22 percent from P1.64 billion in 2012.

“The group’s gross revenue increased by 27.8 percent to P6.9 billion in 2013 from P5.4 billion mainly due to higher revenue from the sale of condominium units and higher rental income from mall and office leasing operations,” Shang Properties said.

In particular, revenues from condominium projects jumped 46 percent to P3.93 billion from P2.69 billion due to higher sales recognized from One Shangri-La Place and Shang Salcedo Place projects.

The 64-story Shang Salcedo Place is located on a 3,045-square meter (sqm) lot in Makati’s Salcedo Village. Estimated to cost around P5 billion, the project offers a total of 778 units, targeted for turnover to residents by 2015.

One Shangri-La Place, the company’s largest development to date, is targeted for completion this year. It is composed of twin skyscrapers housing 1,304 units above the six-level Shangri-La mall expansion.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

“Shangri-La Plaza’s growth of P343 million was mainly due to the revenue generated by the newly opened East Wing Mall and rental escalation of the existing mall,” the company said.

The office leasing operations at The Enterprise Center in Makati picked up 20 percent to P803.8 million on the back of improved average occupancy rate to 97 percent in 2013 from 86 percent a year ago.

In contrast, costs and expenses rose 29 percent to P3.66 billion from P2.83 billion in 2012.

Shang Properties said it recorded higher cost of condominium sales, depreciation expense, and interest expense and bank charges.

The property firm is looking to put up a new residential project this year to take advantage of the booming property sector. It has a 10,000-sqm lot in Malugay in Makati that is undergoing advanced planning.

Shang Properties is also looking to start selling 98 large apartments in Shangri-La Hotel at the Fort. The P18-billion, 60-story Shangri-La Hotel at the Fort in Bonifacio Global City has 577 rooms and almost 100 hotel residences.

Anglo Holdings to focus on oil exploration

 Economy
Aug 292013
 
Anglo Holdings to focus on oil exploration

MANILA, Philippines – The Ramos family’s flagship investment firm Anglo Philippine Holdings Corp. will focus on upstream oil exploration following its divestment in an upscale property firm. Fresh funds from the P778-million sale of its shares in Shang Properties Inc. will finance higher investments in Philodrill Corp., the holding firm said in a regulatory filing. “The company’s overall thrust is to gain meaningful participation in all its investments in natural resources, property development and infrastructure,” Anglo Holdings said. “The company’s sale of its Shang Properties shares is in line with this thrust because the company intends to use the proceeds from the sale to acquire additional shares in Philodrill,” it added. Anglo Holdings currently owns 1.71 percent of Philodrill, which is expected to increase to roughly 10 percent with the additional investment. “From a minority interest in both Shang Properties and Philodrill, the company decided to consolidate its investment into a meaningful participation in Philodrill,” Anglo Holdings said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Anglo Holdings said it noted Philodrill’s higher dividend rate and better market liquidity. “A bigger participation in Philodrill equates to a bigger share in dividends which…will be better than having separate minority interests in two companies,” it added. The improved liquidity will also allow the holding firm to be flexible in realizing gains or minimizing losses. Early this week, Anglo Holdings sold its 214.145 million shares or 4.5-percent stake in the local property unit of Malaysia’s Kuok Group for P778.46 million. Upscale developer Read More …

Kuok unit sees robust Phl sales

 Economy
Jun 272013
 
Kuok unit sees robust Phl sales

MANILA, Philippines – The local property unit of Malaysia’s Kuok Group said it expects to sustain a healthy profit growth for the rest of the year as demand for its residential projects remains robust. At the same time, Shang Properties Inc. will put up a new residential project next year to take advantage of the booming property sector, a company official said. “We anticipate the remainder of the year to also show very robust growth because sales for One Shangri-La Place and Shang Salcedo Place are doing very well,” said Wilfred Woo, Shang Properties director and executive assistant to the chairman. He said the property firm has so far sold 82 percent of One Shangri-La Place and 22 percent of Shang Salcedo Place. In the first quarter, Shang Properties earned 20 percent more at P358.3 million while consolidated revenues surged 54.9 percent to P1.32 billion, driven by higher sales from One Shangri-La Place. One Shangri-La Place, the company’s largest development to date, is targeted for completion in 2014.  It comprises twin skyscrapers housing 1,304 units above the six-level Shangri-La Plaza mall. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 One Shangri-La Place is expected to be completely sold out in the next six to eight months while existing inventory for Shang Salcedo Place will be sold in the next 24 months. The 64-story Shang Salcedo Place is located on a 3,045-square meter lot in Makati’s Salcedo Village. Estimated to cost around P5 billion, the project offers a total of Read More …