MANILA -Sy-led conglomerate SM Investments Corp. (SMIC) sees group-wide spending to reach P90 billion this year, mainly to grow its core property and retail segments while eyeing fresh expansion opportunities in renewable energy and gaming.
“Heading into 2023, we remain optimistic as a group,” SMIC president Frederic DyBuncio told shareholders during their annual stockholders’ meeting on Wednesday.
“The majority of our expansion is focused on the regions especially in emerging regional centers outside of Metro Manila. Our businesses are well-positioned and have clear strategies to participate in the country’s strong growth,” he added.
SMIC owns the country’s biggest bank, BDO Unibank Inc., and largest property developer, SM Prime Holdings.
Property will account for the lion’s share at P80 billion while the remainder will be spent on other segments, including retail.
Franklin Gomez, SMIC senior vice president for finance, said the retail group would open 350 stores this year after rolling out 348 stores in 2022.
“More than 200 [of the new stores this year] will be coming from Alfamart,” he said during a media briefing on Wednesday.
As part of a diversification strategy, SMIC last year acquired Philippine Geothermal Production Co. (PGPC), the operator of the Tiwi and Mak-Ban steam fields, which have a combined capacity of 300 megawatts.
SMIC takes over Tiwi, Mak-Ban steam fields in P15.73-B deal
PGPC chief finance officer Ian Jason Aguirre added they were in the “early stages” in the exploration of five new expansion areas. He said the company was prepared to allocate P3 billion annually using internally-generated cash for this purpose.
Within five years, PGPC aimed to double its power capacity to 600 MW, Aguirre added.
SMIC, together with affiliates Belle Corp. and Premium Leisure Corp., is also part of the gaming consortium in the City of Dreams Manila, a venture with casino operator Melco Resorts and Entertainment.
Premium Leisure president Armin Antonio Raquel-Santos said on Wednesday they were open to bidding for government casinos that would be auctioned off by the state-run Philippine Amusement and Gaming Corp.