SM to start construction of Quezon City condo project

REPORT FROM BUSINESSWORLD PUBLICLY LISTED SM Development Corp. expects to start construction of its newest project, Grass Residences by December, a top official of the company said. Carlos V. Chikiamco, vice-president and project director of Grass Residences, said the project, a three-tower condominium, would rise on a 3.6-hectare lot adjacent to SM City North EDSA. Grass Residences, which has a development outlay of P6 billion excluding land cost, will have a maximum of 39 storeys purely for residential purposes. "The first tower will house 2,000 units, but for the other two [towers] we still have to determine [the number of units]," Mr. Chikiamco said. Contractors for the project were already trimmed down to four, he said. "We bid it (the project) out and we’re evaluating four bidders. We’d probably award it before the end of November," said Mr. Chikiamco. Catering to the young professionals and startup families, Grass Residences will have units that are 21 to 70 square meters. Units will be priced from P920,000 to P5 million. "The construction of the first tower will take 30 months, while the others will follow upon sales take up," Mr. Chikiamco added. Mr. Chikiamco also said the project’s license to sell would be released by the first week of November. Mr. Chikiamco said a direct walkway to SM North EDSA would be constructed for homeowners’ convenience. "We have a bridgeway to SM North EDSA. Then just cross the street you’re in TriNoma, that’s why it’s a good location. Our strength there is we got a lot more open space, [that’s why] it’s called Grass [Residences] to emphasize that there’s a big lawn that people can enjoy," he said. Amenities of Grass Residences include spaces with multiple swimming pools, basketball court and gyms. SM Development, the homebuilding development arm of the SM Group of Companies, is strategically expanding by converting lots near the SM malls into residential projects. It is currently developing Mezza Residences, a four-tower project in Sta. Mesa, and has recently launched 30-storey Berkeley Residences along Katipunan Avenue. It also recently launched Lindenwood Residences, its first residential project, in Susana Heights, Muntinlupa. The firm earlier reported a third- quarter net income of P791.824 million from P591.049 million in the same period last year. The 33.97% growth, it said, was brought about by the increase in revenues to P1.992 billion from P871.971 million as a result of higher real estate sales at P1.290 billion for the period. Operating expense, however, was directly proportional to the increase in sales, causing it to surge fivefold to P1.099 billion from P278.373 million in a bid to aggressively campaign all residential products locally and internationally. — Lovely Nica P. Lee/BusinessWorld