BIZ BUZZ: ‘Big Boy’ resumes land banking
The shopping spree quieted for a while as the local real estate market slumped.
But now, tycoon Henry “Big Boy” Sy Jr., chair of SM Prime Holdings Inc. and SM Investments Corp. vice chair, is back on the prowl for assets that could fuel future developments.
He also expects the unsold condominium inventory of residential arm SM Development Corp. (SMDC) to be “wiped out in three years.”
While SMDC had “overconstructed” like the rest of its peers, Sy said their advantage was that many of their projects are near their shopping malls.
As people prioritize convenience, Sy said SMDC’s strategically located developments continued to attract homebuyers.
“Demand is still strong,” he said in a rare media chat.
SMDC typically offers a 10-percent discount to attract buyers.
Thus, while other groups are unloading raw land to raise cash, Sy deems it timely to do the opposite.
“We are starting to buy land now,” he said.
Asked which areas he is keen on, Sy cited Bulacan, Pangasinan, Iloilo, Bacolod, Cebu, Davao, Cagayan de Oro, Pampanga and Cavite.
By capitalizing on cheaper land prices today while clearing existing inventory, Sy is positioning to ride the sector’s eventual recovery.
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