MANILA — SM Prime, one of the largest conglomerates in the country, is officially entering the premium and luxury property segment with the launch of “Signature Series by SM Residences.”

A new company was formed to focus on high-end developments because the SM Group believes the growth of the Philippine economy has also impacted positively on the wealth of some Filipinos. There is also demand from the upscale market for more property developments.

“As the economy and our nation move forward towards achieving I believe they call it high middle income status, we're not there yet, but we'll soon be there if things go as planned, this market segment has also increased,” said Jose Juan Jugo, SM Prime Executive Vice President and Group Head for Signature Series.

SM has tagged 400 hectares of prime land for the Signature Series, majority of this will be in Metro Manila. There will be projects also in Cebu, Cavite, and Batangas.

“Filipinos are ready for a different kind of premium. One that is intentional, enduring, and rooted in real meaning. Because today to us luxury doesn't mean polish. Its not about excess, but about purpose,” said Jessica Sy, SM Prime Vice President and Head of Design, Innovation, and Strategy.

Sy added, “We're looking into bringing in green energy and different types of forestation, and floral development programs so development can be sustainable.”

The company will invest an initial P25 billion for its first project— a 284-hectare ultra luxury village in Susana Heights in Muntinlupa. Prices of a residential lot will cost at least P100 million.

“We’re looking probably entry level for residential lots 100 million [pesos] per residential lot. These are not small cuts. These are very exclusive,” Jugo said.

A property consultant welcomes SM’s entry into the premium property segment, saying there is high demand for such developments. Another player in the market can also beef up competition in that segment.

“There's only 3 companies playing in the high-end market. That's Rockwell, Shangri-la, and Ayala Land Premier in that order. There is room for more players,” said David Leechiu, CEO and Co-Founder of Leechiu Property Consultants.

Aside from the Susana Heights project, there will be another project in Makati. It will be a partnership with another high-end property developer and they will announce details in the coming weeks.

The company is now in preparatory stage before formally launching the actual construction of the projects lined up. The first completion of a project under Signature Series is expected in at least 3 years or more.