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Richmond Mercurio - The Philippine Star
February 25, 2025 | 12:00am
For 2025, the listed integrated property developer of the Sy family said it would invest P100 billion on the back of expectations of a sustained growth in consumer demand and corporate activity.
Businessworld / File
MANILA, Philippines — SM Prime Holdings Inc. is embarking on a P100-billion investment plan this year to continue expansion across its diversified portfolio.
For 2025, the listed integrated property developer of the Sy family said it would invest P100 billion on the back of expectations of a sustained growth in consumer demand and corporate activity.
The company said that the capital expenditure this year would be prioritized for malls, residences and integrated property developments.
“These planned investments position us to meet evolving customer needs while driving SM Prime toward its next phase of growth,” SM Prime president Jeffrey Lim said.
SM Prime intends to invest about P67 billion for SM Residences and integrated property developments.
The residential projects will include regional, premium and leisure developments, while large, mixed-use and master-planned urban centers will be developed in Luzon and Visayas.
SM Prime has also earmarked about P21 billion for the expansion of its malls’ gross floor area (GFA).
New developments would add 205,400 square meters of GFA, while 124,488 square meters of existing mall space would undergo redevelopment.
SM Prime expects its total GFA for its malls portfolio to reach over eight million square meters by the end of the year.
The company will spend another P12 billion in its office, hospitality and MICE (meetings, incentives, conferences and exhibitions) businesses to expand capacity and enhance facilities.
The investment will fund the construction of two new convention facilities, the renovation of hotel rooms and the addition of food and beverage facilities in existing hotels.
SM Prime is also set to develop new office towers and workspaces, including Six E-Com Center, a Grade A office tower in the Mall of Asia Complex designed for technology-driven industries and business process outsourcing firms.
According to Lim, election-related spending, easing interest rates and higher tourism spending are expected to fuel the company’s growth in 2025.
“Our growth will be driven by the mall business, while our robust project pipeline will enhance the expansion of strategic initiatives across our diversified portfolio,” he said.
SM Prime is coming off a strong 2024 wherein the company saw earnings and revenues reach new record-high levels, driven by higher contributions across all business segments.
