SM Prime to spend P80-B for new malls, condos in 2019

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Metro Manila (CNN Philippines, April 23) – Property developer SM Prime Holdings, Inc. said Tuesday it has earmarked P80 billion in new investments this year for the construction of four new malls, residential units and mixed-use space.

The Sy-led firm said in a disclosure that the additional capital are meant to support expansion plans, which include opening malls in “developing provincial cities” such as the SM Center in Dagupan in Pangasinan, SM City Olongapo Central in Zambales, SM City Butuan, and SM Mindpro Citimall in Zamboanga.

These are worth an additional 200,000 square meters (sq.m.) of retail space, on top of the existing 8.3 million sq.m. across 72 SM malls in the country as of end-2018.

In the residential space, SM Prime through its subsidiary SM Development Corp. (SMDC) is looking to build a mix of high-rise and mid-rise condominium buildings as well as single-detached homes for a total of 15,000 to 20,000 new units.

These are expected to capture the “growing demand among local and foreign buyers,” the listed firm said.

The company is also set to launch its first university-office building called the NU Tower this 2019 to be located at the Mall of Asia Complex in Pasay City, referring to the Sy-owned National University.

A new three-tower office space called the Four E-Com Center will also be built near the seaside complex, which will also house the first store of Swedish furniture maker IKEA by 2020.

SM Prime is also developing new projects and converting mall spaces into mixed-use land. The company told the Philippine Stock Exchange that it is scheduled to open an SMX convention center beside the existing SM City Clark in Pampanga, as well as the Park Inn by Radisson Iloilo and Park Inn by Radisson North EDSA hotels just beside existing malls.

SM Prime booked P32.2 billion in consolidated net income in 2018, 17% higher than the previous year’s profit.

In March, the real estate developer revealed plans to issue P10 billion worth of debt papers this year to finance capital expenditures.

Shares at SM Prime closed at P39.95 apiece on Tuesday, up 70 centavos from the previous day.