SMDC to build condominium in Katipunan, eyes students

MANILA, Philippines - Publicly listed SM Development Corp. (SMDC) is spending P1.3 billion to develop a high-rise condominium project as it taps the unserved market near schools along Katipunan Avenue in Quezon City. The company on Wednesday launched Berkeley Residences, a 35-storey condominium, which would be funded by internally generated funds and borrowings. Berkeley Residences would rise on a 3,150-square meter (sqm) property along Katipunan Avenue and would house 1,063 studio, one- and two-bedroom units. The units, measuring 20 sqm to 60 sqm, will cost P1.5 million to P3.5 million. "The concept behind Berkeley Residences is to provide homes to families, students, and professionals in a location that is close to some of the most prominent schools in the country, namely the Ateneo de manila University, Miriam College and the University of the Philippines," said Rogelio R. Cabuñag, SMDC president and chief operating officer. He said local buyers have shown interest, but many Filipinos working overseas are more interested in ready-to-build units. Construction started in January and turnover is expected by December 2010. More than half of the units have been sold. SMDC is targeting P2.3 billion in sales. SMDC will launch three more residential projects this year, namely Sea Residences, Field Residences and Wind Residences, whose main markets will be the middle-income Filipinos. Sea Residences will consist of six 15-storey mid-rise clusters that will be built on a 1.8-hectare lot near the SM Mall of Asia in Pasay City. The project, which will have less than 2,600 units, will be developed in three phases with the first phase aimed for completion by 2010. Field Residences will also be a mid-rise condominium with up to seven clusters and will house 1,700 units. It will rise on a seven-hectare lot behind SM Sucat in Parañaque City. "We have a third one, Wind Residences in Tagaytay City, but that is still in the planning stage," Mr. Cabuñag said. SMDC is the real estate arm of Henry Sy’s SM Investments Corp. for residential projects. Last year, it earned a net profit of P1.2 billion due to strong condominium sales.