1.

EXECUTIVE SUMMARY:

SM Development Corporation (SMDC) was originally incorporated on July 12, 1974 as Ayala Fund, Inc., a
closed-end investment company. In March 1986, it was renamed SM Fund, Inc. after the SM Group of
Companies took ownership of the company. After which, it stayed as an investment company that
managed its investment thru diverse businesses in the country. In May 1996, SM Fund, Inc. was again
renamed to SM Development Corporation to better state its new business of property development,
whose focus is primarily to enter into the opportunities of the real estate industry. The paper aims to
provide a comprehensive analysis on SM Development Corporation’s industry as one of the leading
property development companies in the Philippines. Currently, the company is at full-swing with their
openings of new condominiums for students, vacationers and business people depending on its location.
SMDC has proven to be able to respond to buyers their locations are friendly to their target market and
their price range is more affordable while amenities are not constrained. In order for the company to
keep its head above their competitors, strategic management should be done.

SM Prime’s wholly-owned residential developer, SM Development Corporation (SMDC) is a trailblazer in

the middle market residential condominiums. SMDC develops primary homes that attract customers
looking for conveniently located, aspirational, yet affordable residences. Its customer focus helped
SMDC develop a business model that aims to turnover units at the fastest rate in the sector, without
compromising quality. The projects offer five-star amenities such as grand lobbies, Olympic-sized
swimming pools, function rooms, jogging paths and libraries, among others, that address the customers'
needs and aspirations for a convenient and healthier lifestyle.

SMDC’s residential projects are strategically located in Metro Manila, particularly near the country’s
lifestyle and business districts such as in Quezon City, Makati, Manila, Pasay, Pasig, Taguig, and
Paranaque, as well as in developing provinces including Tagaytay, Laguna, Bulacan and Davao City.

As demand for primary homes remains robust, SMDC aims to launch more projects in various cities in
Metro Manila and develop homes in key cities in Visayas and Mindanao. It will continue to build more
homes that will provide comfort and a balanced environment for communities.

SMDC Mission Statement

SM Development Corporation will realize its vision by:

 Ensuring that its homebuyers enjoy the best value for their investment with an upscale lifestyle,
generous amenities, and a safe, secure, and friendly neighborhood;
 Providing an excellent after-sales and maintenance service that will preserve and enhance the
long-term value of its residences;
 Delivering sustainable long-term growth and increasing shareholder value by exercising
prudence in resource management based on the principles of good corporate governance;
 Becoming an employer of choice, offering comprehensive opportunities for career growth and
enhancement; and,
 Assisting and nurturing the communities in which it operates by progressively building on its role
as a responsible corporate citizen;
 SMDC Core Values

Vision. Leadership. Focus. Hard Work. Integrity. Innovation. Prudence. Nurturing. Aggressive. Financially
Conservative.

2. Business overview
A. Market background
SMDC is a fast-growing residential property developer focusing on the premium middle
market, expertly balancing key housing factors of quality, style, durability, and
affordability.

SM Development Corporation is the real estate arm of the SM Group of Companies. As

of December 6, 2010, its total market capitalization is P63.4 billion and its share price is
P8.66.
Business development SM Development Corporation was incorporated in 1974 as Ayala
Fund, Incorporated, a closed-end investment company. It was listed on the Philippine
Stock Exchange in March 1975. In 1986, the SM Group of Companies became the
majority shareowner and renamed it to SM Fund, Incorporated, an investment company
that provides investors with professional-managed vehicle to invest in diversified
businesses. In 1996, SM Fund was renamed SM Development Corporation and its
primary business was to pursue real estate investment opportunities. However, its
business of securities investment was retained to provide regular flow of earnings from
the interest and dividends.
In 1997, SM Development Corporation established the SM Synergy Properties Holdings
Corporation to develop the 4.7 hectare mid-rise residential condominium, Chateau
Elysee in Bicutan, Paranaque. Its second project was the development of the Mezza
Residences, located just across SM City, Sta. Mesa.
In 2007, SMDC began developing the residential subdivision, Lindenwood Residences in
Muntinlupa City. The same year, the Berkeley Residences, a 35-story residential
condominium along Katipunan Avenue; and the Grass Residences, a three-tower
condominium located near the SM City North EDSA, were also launched. The Grass
Residences is the biggest project to date by SMDC. Upon completion, it will boast of
5,390 units but still with ample space for its residents to enjoy the amenities.
In 2008, SMDC launched Sea Residences and Field Residences. Sea Residences is a mid-
rise residential condominium located near the Mall of Asia Complex. For this particular
project, SMDC incorporated SM Residences Corporation in August 2008 and acquired
the 1.85 hectare of land. Field Residences is also a mid-rise condominium located in
Sucat, Paranaque. In 2009, SMDC launched the Princeton Residences along Gilmore
Avenue, Quezon City, and the “Big Four” namely: Jazz Residences at Jupiter Street,
Makati, Sun Residences at Welcome Rotonda, Quezon City, Wind Residences at
Tagaytay, Cavite and Light Residences at Pioneer, EDSA.
Financial highlights
Revenues for the third quarter of 2010 grew to P6.6 billion from P3.7 billion a year ago.
Net income after three quarters amounted to P2.048 billion from P1.3 billion.
COMPANY PROFILE SM DEVELOPMENT CORPORATION SMDC is a fast-growing
residential property developer focusing on the premium middle market, expertly
balancing key housing factors of quality, style, durability, and affordability.

SM’s property business showed significant growth in 2009, gaining more traction in
residential, commercial, tourism, and hotel development. For the year, the group
achieved impressive financial results. SMDC has many ongoing projects. In addition to
the Chateau Elysee at Bicutan Paranaque City, Sea Residences in Pasay City and the Field
Residences in Sucat, Parañaque which were unveiled in 2008. Other projects are as
follows: Sun Residences in Welcome Rotonda, Grass Residences at SM North EDSA, Light
Residences at Boni MRT Station, Mezza Residences at SM Centerpoint Sta. Mesa,
Princeton at New Manila, Jazz Residences at Makati City, Berkeley Residences at
Katipunan Ave. Quezon City, and Wind Residences at Tagaytay City.

Filipinos can now live in style, comfort, and convenience with SMDC. With quality
amenities and top-notch services, SMDC has the makings of your next dream home.

SM Development Corporation commits itself to provide access to luxurious urban living

through vertical villages perfectly integrated with a commercial retail environment,
giving its residents access to a truly cosmopolitan lifestyle.

Board of Directors:

 HENRY SY SR.(Chairman of the Board)

He is the founder of the SM Group and is currently Chairman Emeritus of Banco de Oro
Unibank, Inc., Honorary Chairman of China Banking Corporation, Chairman of SM Prime,
SM Land, Inc. (formerly Shoemart Inc.), SM Development, and Highlands Prime, Inc.,
among others.

Mr. Sy opened the first Shoe Mart store in1958 and has since evolved into a dynamic
group of companies with four lines of businesses - shopping malls, retail merchandising,
financial services, and real estate development and tourism.
HENRY SY SR.- OWNER AND FOUNDER OF SM Development Corporation.

 1st Chinese-Filipino recipient of the PCE Big Brother of Filipino Entrepreneurs

award (2006)
 1st Chinese-Filipino recipient of the PRA President's Award (2005)
 Founder of SM Department Store (Shoe Mart, 1958)
 Owner of SM Investments Corp.
 "Father of Philippine Retailing"
 Number 1 in the List of FORBES magazine as the richest man in the Philippines.
  Chinese Filipino businessman and the founder of SM Group and chairman of SM
Prime Holdings, the largest retailer and shopping mall operator in the
Philippines. He earned his Associate of Arts degree in Commercial Studies at Far
Eastern University in 1950. Acknowledged as the country’s "Retail King," he has
come a long way from the modest shoe store he set up in Quiapo in 1946, to
become Asia's biggest shopping mall operator with over 30 malls throughout
the Philippines.
 SMDC CHAIRMAN AND FOUNDER HENRY SY SR. (Mall King)

 Henry Sy, Jr. –Vice Chairman of the Board

 Rogelio Cabuna –Director
 Andrews Gatmaitan—Director
 Elizabeth Sy –Director
 Octavio Espiritu – Independent Director
 Ricardo Romulo – Independent Director

B. Product

 Air Residences
 Berkley Residences
 Bloom Residences
 Blue Residences
 Breeze Residences
 Charm Residences
 Chateau Elysee
 Cheer Residences
 Cheerful Residences
 Coast Residences
 Fame Residences
 Field Residences
 Gem Residences
 Glam Residences
 Gold Residences
 Grace Residences
 Grass Residences
 Green Residences
 Green 2 Residences
 Hill Residences
 Hope Residences
 Jazz Residences
 Lane Residences
 Leaf Residences
 Light Residences
 Light 2 Residences
 Lush Residences
 M Place South Triangle
 Mezza Residences
 Mezza II Residences
 Mint Residences
 Park Residences
 Princeton Residences
 Red Residences
 S Residences
 Sail Residences
 Sea Residences
 Shell Residences
 Shine Residences
 Shore Residences
 Smile Residences
 South Residences
 Spring Residences
 Style Residences
 Sun Residences
 Trees Residences
 Vine Residences
 Wind Residences

C. Project details
Project name: Gold Residences
Developer: SMDC
Location: Gold City, Parañaque
Project type: mid rise residential condo
Estimated date of completion: Phase 1: Q3 2024 | Phase 2: Q2 2026
Unit types: 1BR, 2BR

D. Pricing
 Payment Option 1
15% payable within 51 months at 0% interest,
85% through lump sum or bank financing.

 Payment Option 2
20% payable within51 months at 0% interest,
80% through lump sum or bank financing.

 Payment Option 3
10% spot downpayment due 30 days from reservation date,
10% payable within 50 months at 0% interest,
80% through lump sum or bank financing.
(with 0.25% discount on the list price)

 Payment Option 4
20% spot downpayment due 30 days from reservation date,
10% payable within50 months at 0% interest,
70% through lump sum or bank financing.
(with 0.50% discount on the list price)

 Payment Option 5
10% spot downpayment due 30 days from reservation date,
90% payable within 51 months at 0% interest.
(with 1% discount on the list price)

 Payment Option 6
20% spot downpayment due 30 days from reservation date,
80% payable within 51 months at 0% interest.
(with 2% discount on the list price)

 Payment Option 7
50% spot downpayment due 30 days from reservation date,
50% payable within 51 months at 0% interest.
(with 2.50% discount on the list price)

 Deferred Cash
100% payable within 51 months at 0% interest.
(with 1% discount on the list price)

 Spot Cash
100% or full payment due 30 days from reservation date.
(with 5% discount on the list price)
Valid from October 01, 2020 to January 02, 2021 only.
Note: Number of months to pay is shortened as construction progresses.
 E. Competitors
As a real estate investor, you need to have an understanding of the Philippine’s most
reliable developers to know where to put your money. Factors such as quality,
specialization, and the especially when multiple developers offer similarly priced
investments in the same neighborhood. Here are the top 2 competitors of SMDC.

1. AYALA LAND- Ayala Land Inc, is one of the largest and most famous developers owned
by the giant Ayala Corporation. It was founded in 1988 with a current income of 166.2
billion of consolidated revenue in 2019. Ayala has 5 distinct residential brands. Ayala
Land Premier offers luxurious high end developments, Alveo caters to urban high
achievers and cosmopolitans, Avida services the middle class, while Amaia and BellaVita
services the broad C market for a wide range of offerings. It is also currently the
country’s largest property developer with 11,624 hectares in their landbank, and
established success stories in Makati Central Business District (Makati CBD),Ayala
Alabang, Cebu Park Districts, Bonifacio Global City (BGC) and Nuvali. It is also ranked
high in the Philippine Stock Exchange(PSE) at 4th place.

2.MEGAWORLD- Megaworld is another of the country’s leading real estate developers

that pride itself in pioneering the live-work-play-learn township concept in the
Philippines, introducing high-end residential condominiums and mixed-use communities
to middle-income earners across Metro Manila, Cebu, Iloilo, and Davao. It was founded
in 1989 and now has a net income of P44.9 billion in consolidated revenues. Some of its
distinguished township projects include its flagship Eastwood City, Uptown Bonifacio,
Forbes Town Center, Newport City, Mckinley Hill and the Iloilo Business Park. It current
landbank stands at 4,500 hectares and ranks 18th in the PSE.

The SWOR analysis

Marketing strategy:

While many people hope one day to purchase their own home, cultural barriers and shortages in
affordable housing are just two of the issues that can prevent these dreams from materializing. Reed
Properties is working to keep these dreams alive. Hiring more broker will not only define success by the
number of units closed and sales volume but also by whether people were helped in the process.

The office environment we will be providing will be productively arranged yet inviting to the agent as
well as the client. There will be a location in the office each day with a daily marketing routine/schedule
to follow. Agents have the opportunity to be guided each day through a marketing plan to gain clients.
They may choose to follow the guidelines and training provided or they may follow their own daily
routines. We will be supplying a program allowing the new agents to earn more than the average real
estate agent by providing guidance and stability.