SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, will spend almost PHP80 billion in 2015 to support its aggressive expansion program. The company will increase by 12% its mall space in the Philippines and intends to launch five high rise residential projects with at least 11,000 units. SM Prime will also open an office building on its Mall of Asia Complex property bringing the company’s total office portfolio to five. SM Prime allocated 70% of its capital expenditure for project developments while the rest is for land banking.
“SM Prime’s aggressive expansion programs this year and in the coming years are a testament to management’s confidence that the economic growth of the Philippines will be sustained over the medium term and will eventually have a positive impact on the provinces as growth spreads to these areas. We have increased our budget to over PHP330 billion in the next four years until 2018, reflecting our solid commitment to support this growth,” SM Prime President Hans T. Sy said.
This year’s Philippine mall expansions are geared towards the provincial areas as SM Prime will open SM City San Mateo in Rizal, SM City Cabanatuan in Nueva Ecija, and SM Seaside City Cebu. This will be complemented by opening one Metro Manila mall – SM City Sangandaan in Caloocan. SM Prime is also expanding existing malls SM City Lipa in Batangas and SM City Iloilo. Combined, these malls will add almost 800,000 square meters of gross floor area. These will increase SM Prime’s total mall space by 12% to 7.3 million square meters by end 2015. Among these developments, the biggest is SM Seaside City Cebu, located within the SM Seaside Complex in the South Road Properties (SRP) in Cebu. This is the second “lifestyle city” project of the company following the success of the Mall of Asia (MOA) Complex in Pasay. The SM Seaside Complex will be an integrated property development that combines the construction of malls, offices, an arena, residential buildings, a five-star hotel and convention centers. The complex will feature “The Cube”, a steel sculpture that symbolizes strength, stability, and SM Prime’s continued commitment to excellence.
SM Prime’s residential unit will launch at least five new high rise condominiums with about 11,000 units in total in the cities of Mandaluyong, Quezon City, Taguig and Tagaytay, and at the MOA Complex. SM Prime will also add new towers in five existing projects that will be built to accommodate the increasing demand for housing by most Filipino households and young professionals.
The Commercial Property Group of SM Prime will keep the growth momentum going, based on the continuing demand for better office facilities from the Business Process Outsourcing companies. This year, the FiveE-com Center will be ready for occupancy. The 129,000 square meter-FiveE-com Center promises to be another architectural landmark in the MOA complex with its modern and innovative graphic design that resembles shifting blocks. SM Prime will remain committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.