SM Prime Holdings, Inc., the property unit of bilyonaryo Henry Sy, Sr., is planning to build up to 1,500 units geared for the broader low-cost segment of the residential market this year as part of the group?s product diversification strategy.
Jose Mari H. Banzon, SM Prime business unit head for primary residential told BusinessWorld the group will enter that particular market gradually with only about a 10th of the total number of units lined up for construction this year allocated for low-cost housing.
SM Prime is looking at ?several? projects within the price range of P800,000-P1.5 million comprised of both mid-rise developments, and house and lot packages. The price range falls under the Housing and Urban Development Coordinating Council?s definition of low-cost housing, which is above P450,000 to P1.7 million.
The company was supposed to start on projects in Cavite and Pampanga last year, but pushed back the launch as it continued to consolidate properties for these developments.
SM Prime is on its third year of a five-year program that entails a capital spending budget of P400 billion to beef up its businesses that will double earnings by 2018.
The company booked net profits of P22.87 billion in the period ending September 2015, 70 percent higher than year-ago?s P13.81 billion on one-time trading gains and expansion of its shopping mall and residential businesses.
SM Prime is part of SM Investments Corp., which has core businesses in retail, banking and real estate. The Sy family also has interests in gaming, geothermal energy and infrastructure.