BIZ BUZZ: SM Prime-Shang Properties deal in the works

Property giant SM Prime Holdings undoubtedly wants its first residential offering under newly launched luxury brand “Signature Series” to make waves in the market.

Remember its recent teaser about a “landmark” development in Makati that will be developed with a yet unnamed strategic partner?

Biz Buzz sources said the project spoken of would rise on a prime 6,000-square-meter lot beside Rockwell Land’s upscale Proscenium that had long been part of the SM group’s land bank.

If you look at Google Map, there’s an area there already identified as “SMDC Rockwell Project.”

This brings us to the question of who will be SM Prime’s collaborator in this luxury residential development.

Our sources said the prospective partner was Shang Properties, which has a long track record in the premium residential space.

This will be the first time that SM group will team up with Shang Properties.

In the past, however, it had already undertaken two premium residential development projects with the Ty family along Ayala Avenue (The Estates and long before that, Ritz Tower).

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While the Sy family can surely fund this project on its own, bringing in a strategic partner with more expertise in the premium market greatly reduces its risk.

The parties take heart from the fact that existing luxury properties in Makati are consistently rising in value due to the extreme scarcity of land.

Now it’s time to unlock those rich land values.