CEBU CITY, Philippines—SM Prime Holdings Inc. (SMPHI) plans to increase to P30 billion its investment in SM Seaside complex—a 30-hectare integrated development at South Road Properties (SRP) in Cebu City.
SMPHI announced the hike investment as it expected a rise in demand for office spaces, as well as a bigger venue for conventions and events.
Hans T. Sy, president and director of SM Prime, told reporters that the original investment for the project was about P20 billion.
Sy said the company decided to hike the budget so it could accommodate the increase in the floor area ratio of the property.
“We feel that the demand is going to be there,” he explained.
Apart from a mall and office buildings, SM Prime also plans to build a convention center at the complex.
The venue will be half the size of the 25,000-square-meter SMX convention center at Mall of Asia.
Addressing the mall tenants, Annie Garcia, president of SM Supermalls, noted that Cebu has been ranked the eighth most preferred destination globally for business process outsourcing companies.
It makes perfect sense, Garcia said, to build SM Seaside City because Cebu now has more than 80 business process outsourcing (BPO) firms.
SM Seaside complex is expected to become a major tourist draw for Cebu due to Seaside Tower, a component of SM Seaside City shopping mall, Sy said.
Seaside Tower, the first of its kind in Central Visayas, is a 148-meter structure that provides a breathtaking view of Cebu. The tower, which will also have bars and restaurants, will be a welcome addition to Cebu’s attractions.
The P7.5-billion, 5-level SM Seaside City has a gross floor area of 470,490 square meters, making it SM Prime’s 4th biggest shopping mall in the Philippines, after SM Megamall (570,000 sq.m), SM North (540,000 sq.m.) and Mall of Asia (480,00 sq.m.).
Its 93,570-sq. m. leasable area could accommodate over 400 tenants.
SM Seaside City, which is expected to open by the end of November, will also create 5,000 jobs for the SM group alone, he added.
The development of the complex is expected to be completed in 10 years. “We are now on our fourth year,” Sy said.