PROPERTY developer SM Development Corp., a listed company controlled by the Sy group, needs P5 billion to fund new projects and acquisition of properties over the next five years.

President Rogelio Cabunag said that they would fund this need by selling additional shares in a public offering and through borrowings.

“We are now studying the movements of the market. We’ll see if it would be favorable to sell shares or perhaps secure peso debt,” Cabunag said in an interview.

Initially, he said, the P5 billion would be used to buy lands.

 “We have to fill up our pipeline as we accelerate the sale of our existing projects,” Cabunag added.

This year, SM Development is spending around P2 billion, the bulk of which would go to three new residential projects in Alabang and Quezon City. The new projects are Lindenwood Residences in Susana Heights, Berkeley Residences on Katipunan Avenue, and Grass Residences in North Edsa, Quezon City.

Lindenwood is a residential development whose basic design is based on American subdivisions. The two-hectare property is divided into 390 lots. SM  is selling the lots for P3.5 million to P7 million.

“Development for Lindenwood started and our clients can start building their homes in the first quarter of 2008,” Cabunag said.

SM Development is also launching the 30-storey condominium Berkeley to cater to students and their families, as wells as academic professionals. Its units range from 19 to 80 square meters in studio-type, one-bedroom, two-bedroom and penthouse configurations.

The Grass Residences, another condominium adjacent to the SM North Edsa shopping mall, is a three-tower project that SM Development is pushing as one of the most convenient and accessible properties for the mobile professional.

Units at Berkeley and Grass would cost P1 million to P3 million each.

SM Development is now in a better position to assume a more assertive stance in the real property sector, according to Cabunag. “Our milestones in 2006 have given us plenty of opportunities to boost our resources and strategies in building more residential projects near the SM Supermalls,” he said.

The company ended the first quarter with a net income of P661 million, versus P81 million in the same period last year.

Growth was supported by the improvement in its equities portfolio and real-estate sales.

“While we are a smaller company compared with the other real-estate firms, we are optimistic that we can sustain growth,” Cabunag said.

PROPERTY developer SM Development Corp., a listed company controlled by the Sy group, needs P5 billion to fund new projects and acquisition of properties over the next five years.

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