SM Development Corp, the residential unit of Sy family and Federal Land Inc., the residential arm of the Ty group, formed a 50:50 joint venture to develop a high-end residential tower in Makati City.
SM Development executive vice president and SM Prime residential business head Jose Mari Banzon said in a recent interview the 3,400-square-meter property along Ayala Ave. would be developed as a high-end residential development
“We will not do justice to the property if we will not make this a premier, high-end development,” Banzon said.
The joint venture partners are still finalizing the details of the project, including the construction cost, number of units to be offered and selling price per square meter.
Banzon said the project was expected to be launched next year.
This is the first joint venture project to be undertaken by SM Development Corp., which has been developing condominiums for the middle-income market.
SM Development earlier said it planned to expand its portfolio by venturing into horizontal development and launch its first house and lot project in Pampanga this year.
The group’s plan to develop house and lot projects aims to address the massive housing backlog.
Units under this segment will be sold at a price range of between P800,000 to P1.7 million.
At the same time SM Development also plans to launch its first affordable mid-rise residential project in Cavite.
Over the next couple of years, SM Development targets 50 percent of its revenues and launches to come from house and lot and mid-rise developments while the remaining 50 percent will come from high-rise condominiums.
At present bulk of its residential launches are high-rise developments while only 10 percent are mid-rise and house and lot projects.
Federal Land on the other hand it plans to launch seven new projects this year, mostly residential developments covering high-end and mid market.