SM Prime sets P80-B capex for 2018

By Leslie Gatpolintan

April 24, 2018, 7:41 pm

MANILA -- Property giant SM Prime Holdings, Inc. is earmarking PHP80 billion in capital expenditure this year mainly to expand its mall and residential businesses, as it targets to sustain its winning streak of double-digit growth in profits.

SM Prime President Jeffrey Lim said it aims to open four more SM malls, and launch at least 15,000 residential units this year.

Lim said these malls are located in Urdaneta in Pangasinan, Telabastagan in Pampanga, Legazpi in Albay, and Ormoc City in Leyte. SM Prime has already opened SM Center Imus in Cavite last February.

“In the coming years, we are eyeing to complement our malls in the provinces by bringing more residential, office and hotels and convention center projects,” he said during the company’s stockholders meeting on Tuesday.

Through SM Development Corp. (SMDC), SM Prime will continue to develop high-rise building projects as these attract a great number of urban dwellers and start-up families.

It will also expand its mid-rise building and single-detached house and lot projects to address a larger share of the broad housing demand across all segments.

For other businesses, Lim further said it is scheduled to launch the ThreeE-Com Center, its third office building in the Mall of Asia Complex, as well as add more rooms to the Park Inn Hotel in Clark, Pampanga.

“Our strategy to roll out more malls, launch more residential projects and complement existing ones with offices and hotels to achieve integrated developments have continued to drive double-digit growth for SM Prime for both revenues and net income,” he added.

SM Prime posted a 14-percent increase in consolidated revenues of PHP90.9 billion in 2017 from PHP79.8 billion the previous year. Its recurring net income grew by 16 percent to PHP27.6 billion from PHP23.8 billion in 2016.

SM Prime ended 2017 with a total of 67 malls in the Philippines offering 8 million square meters of gross floor area (GFA), and seven malls in China with 1.3 million square meters of GFA. (PNA)