Property developer Shang Properties Inc. set aside P6-billion in capital expenditure for 2017, mostly to fund ongoing residential and commercial property construction.
Part of the P6-billion capital budget will be for the construction of the company’s new residential project, The Rise in Makati, Shang Properties vice president and financial controller Kin Sun Ng said in an interview after the company’s stockholders meeting on Tuesday.
The Rise is currently at 15 percent construction progress while 73 percent of inventory had been sold.
Part of the capital spending will also be for the expansion and renovation of building facilities in the Enterprise Center, the company’s Grade A office along Ayala Avenue in the Makati Central Business District.
In 2016, Shang Properties’ capital spending was at around P7 billion.
Currently, there are still no plans of developing new projects outside Metro Manila and in Pagcor Entertainment City. Also, there are no firm plans to launch any new hotel or other projects for the rest of the year.
“We’re still building The Rise… We just opened Shang Salcedo Place (SSP) and we are also looking at other projects at the moment. That we will be announcing in the near future,” said Greg Dogan, president and chief executive officer of Shangri-La International Hotel Management Ltd.
Shang Properties caters to the middle income and high-end market with its residential properties: Horizon Homes, One Shangri-la Place, Shang Salcedo Place and the upcoming, The Rise Makati. It also offers office leasing in The Enterprise Center and is also into the mall and retail business through Shangri-la Mall Plaza.
Meanwhile, the company continues to be positive and hopeful for its outlook revenue this year.
“We are quite positive and hopefully we can do better than last year,” Ng said.
The company is also looking at different business opportunities and discussing with potential partners.
The company had a 2 percent gain in net income in 2016 amounting to P2.9 billion. Gross revenues stood at P11.3 billion, a 36-percent increase from P8.3 billion in the previous year.