SM Development Corporation is “very bullish” about prospects for 2009 and is launching projects that will cost P15 billion after first quarter sales doubled profits surged 27.5 times to P400 million.

During the firm’s annual stockholders meeting yesterday, SMDC president Rogelio Cabunag said they will launch four new condominium projects this year worth P15 billion for construction between 2009 to 2012.

Cabunag said capital expenditures for this year will amount to P7.2 billion from P4.5 billion in 2008 adding that 80 percent of the capex will be funded by internally generate funds while the first will tap existing bank lines for the balance of around P1.5 billion.

In response to a stockholders query, Cabunag said net income surged to around P400 million from P14 million in the same period last year on the back of stronger take up of the SMDC’s condominium projects.

He added that SMDC also does not effect any significant changes in its investment portfolio this year in contrast to huge mark to market losses incurred last year.

SMDC still holds substantial marketable securities in its portfolio as part of its asset management operations. These will be liquidated to support future operations.

For his part, SMDC vice chairman Henry Sy Jr. said sales jumped by 109 percent to around P1.2 billion from record sales of P575 million in the first quarter of 2008 as he noted that the global crisis had little impact on the company’s business.

Sy said the company’s products are gaining acceptance in the market despite its late entry into the business because the low price, great value and prime locations. He said that, because of this, the firm is actively seeking to buy new land for development. SMDC already has a landbank of 1.4 million square meters located primarily in Metro Manila and prime areas in provinces like Tagaytay.

Projects to be launched this year will include Princeton Residences near the Gilmore Station of LRT 2 in Quezon City at a cost of P1.5 billion. This will be SMDC’s first fully furnished condominium projet.

Other projects are the P2 billion Tree Residences in Cainta which will have 2,420 units in eight 12-storey buildings, the P4.3 billion Wind Residences in Tagaytay which will have 2,100 units and the P7.2 billion Jupiter Residences in Makati which will consist of six 40-storey buildings and a total of 5,224 units.

Other projects in the pipeline are the Stanford Residences in Katipunan Ave. in Quezon City, and projects in Taft Ave. Manila, Mayon Stree in Quezon City, MRT Boni Station in EDSA and Calatagan, Batangas.

SMDC Chairman Henry Sy , Sr, for his part, said 2008 saw the complete transformation of SM Development Corporation (SMDC) into a residential development company- one that addresses the emerging mid-market which aspires to a better lifestyle, and greater affordability.

“In fact, SMDC exceeded our expectations in 2008. The public responded overwhelmingly to its residential offerings that in spite of a challenging global environment, the company achieved a 116 percent growth in real estate profits to P1.1 billion. More importantly, in the face of a softer property market, SMDC pre- sold residential units worth P5.1 billion , an increase of 28 percent.

And as it moved to complete its projects, SMDC’s realized revenues from real estate expanded by 56 percent to P3.1 billion,” Sy Sr. said.