SM Prime Holdings Inc. (SM Prime), one of Southeast Asia’s largest property developers, is allotting ₱100 billion for capital expenditures this year, same as the amount earmarked in 2024, as it expects sustained growth in consumer demand and corporate activity.
"We expect election-related spending, easing interest rates and higher tourism spending to fuel our growth in 2025," said SM Prime President Jeffrey C. Lim, highlighting the company's strong outlook.
He noted that, “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.”
Lim said SM Prime’s investment this year will be prioritized for malls, residences and integrated property developments.
The bulk of capex, amounting to ₱67 billion in investments, is planned for SM Residences and integrated property developments (IPDs).
The residential projects will include regional, premium and leisure developments, while the IPDs—large, mixed-use, master-planned urban centers—will primarily be in Luzon and Visayas.
SM Prime has also set aside approximately ₱21 billion for the expansion of its malls' gross floor area (GFA) to over eight million square meters by the end of the year.
New developments will add 205,400 square meters of GFA, while 124,488 square meters of existing mall space will undergo redevelopment.
Meanwhile, SM Prime is set to invest ₱12 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.
The company will also 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 BPO firms. The expansion is a result of robust tenant demand for existing inventory.
"These planned investments position us to meet evolving customer needs while driving SM Prime toward its next phase of growth," said Lim.
3 weeks ago
10
