Philippine billionaire to reclaim land in Manila Bay

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Philippine billionaire Henry Sy plans to spend $1.26 billion to reclaim land in Manila Bay as large plots for development become scarce in the Philippine capital, Bloomberg reported on October 7.

SM Land Inc., which Sy is shaping to become the nation’s largest builder, has offered to reclaim 300 hectares from the sea, parent SM Investments Corp. said. SM Investments is Sy’s publicly listed holding company that owns banks, malls and grocery stores.

SM Land is pursuing the reclamation project because Manila doesn’t have a supply of single properties of that scale, the company said. Based on the estimated cost to reclaim the land from the sea, the project indicates a price of 18,167 pesos ($433) per square meter for the 300 hectares. The company’s share of the reclaimed site will not exceed 49 percent, according to SM Land and government filings. The rest will be owned by the city of Pasay, where the area is being reclaimed.

“Manila doesn’t have a supply of land this big anymore and it will be very expensive to come up with something similar in scale,” said Julius Guevara, a Manila-based associate director at Colliers International. “The big parcels are already in the hands of major developers and are not likely for sale.”

The 60-hectare Mall of Asia complex, Sy’s most valuable property based on price per square meter, is home to offices, a convention center, a sports arena and the nation’s second-biggest shopping center.

Property valuations around the Mall of Asia complex range from 100,000 pesos a square meter to 120,000 pesos a square meter and have a “big potential for future price appreciation” because of the projects being built in the area, Colliers’ Guevara said.

Sy, 88, has a net worth of $13.7 billion, making him the richest man in the Philippines.

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Reading Time: 1 minute

Reading Time: 1 minute

Philippine billionaire Henry Sy plans to spend $1.26 billion to reclaim land in Manila Bay as large plots for development become scarce in the Philippine capital, Bloomberg reported on October 7.

SM Land Inc., which Sy is shaping to become the nation’s largest builder, has offered to reclaim 300 hectares from the sea, parent SM Investments Corp. said. SM Investments is Sy’s publicly listed holding company that owns banks, malls and grocery stores.

SM Land is pursuing the reclamation project because Manila doesn’t have a supply of single properties of that scale, the company said. Based on the estimated cost to reclaim the land from the sea, the project indicates a price of 18,167 pesos ($433) per square meter for the 300 hectares. The company’s share of the reclaimed site will not exceed 49 percent, according to SM Land and government filings. The rest will be owned by the city of Pasay, where the area is being reclaimed.

“Manila doesn’t have a supply of land this big anymore and it will be very expensive to come up with something similar in scale,” said Julius Guevara, a Manila-based associate director at Colliers International. “The big parcels are already in the hands of major developers and are not likely for sale.”

The 60-hectare Mall of Asia complex, Sy’s most valuable property based on price per square meter, is home to offices, a convention center, a sports arena and the nation’s second-biggest shopping center.

Property valuations around the Mall of Asia complex range from 100,000 pesos a square meter to 120,000 pesos a square meter and have a “big potential for future price appreciation” because of the projects being built in the area, Colliers’ Guevara said.

Sy, 88, has a net worth of $13.7 billion, making him the richest man in the Philippines.

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