SM unit sets P57B capex for 2012

SM Investments Corp. plans to spend P56.8 billion ($1.3 billion) for capital outlays next year, aiming to sustain its double-digit growth in the years ahead despite a fragile global economic environment for 2012.

SMIC reported a 13.6-percent growth in consolidated net income to P14.17 billion for the first nine months compared with the same period last year. Among its core businesses, banks contributed 31.3 percent of net profit, followed by the retail and shopping malls with 28.1 percent and 23 percent, respectively. SM’s real property business, including its fast-growing residential property operations, had a share of 17.6 percent.

SMIC president Harley Sy said the conglomerate realized its revenue and income growth objectives due to the consistent achievements attained by its subsidiaries. “Our strategy is to focus on our core businesses where we have the necessary expertise to continually expand and deliver value for all our stakeholders. We intend to maintain this approach in the last quarter of 2011, which is traditionally our strongest period,” he said.

For next year, bulk of the group’s capital outlays would go to shopping mall development (P20.9 billion) and other property development (P26.9 billion).

Expansion for other businesses is budgeted for next year as follows: P4.6 billion for retailing, P3.4 billion for banking and P1 billion for the hotel and convention unit.