SM raises stake in Clark Freeport

Around 90 kilometers north of Metro Manila stands a sprawling area peppered with commercial establishments, hotels and office areas.

Once a United States Air Force base known as Clark Air Base, the Clark Freeport and Special Economic Zone (CFEZ) in Pampanga province now houses some of the most vital infrastructure crucial to addressing rapid urbanization in the capital region.

Data from the Bases Conversion and Development Authority show that CFEZ generated P5.75 billion in revenues and P2.79 billion in earnings last year. It likewise welcomed 3.3 million tourists.

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Sy family-led SM Investments Corp. (SMIC), the country’s largest conglomerate in terms of market value, has been taking advantage of CFEZ’s growth for nearly two decades.

Since 2006, the SM Group has built several properties that now provide space for 20 percent of the total 138,000 people in Clark.

“This region has steadily grown and is becoming a hub for growth,” SM Supermalls president Steven Tan says. “That’s why in recent years, we have supported that growth through out integrated properties to help spur economic activity for the benefit of communities where we operate.”

SM office properties alone employ over 22,000 people across 10 office towers, adding to the 5,000 mall tenants at SM City Clark.

Among the earliest local entrepreneurs that found a business boost through SM City Clark was Marnie Alcantara, founder of perfume brand Prescripto.

From selling only a handful of bottles to his closest friends back in 2006, Alcantara’s brand now has over 65 branches across the country.

“We weren’t businessmen so how could we be accepted [into the start-up market]? But still, SM gave us that chance,” Alcantara shares.

Jo-Ann Emperado-Macababat, another homegrown business owner, has also expanded her earring business from just 10 designs to over 300 that are now sold at various SM malls in Quezon City, Pasay, Taguig, Parañaque and Makati.

To give more opportunities to business owners like Macababat and Alcantara, the SM Group is banking on the completion of crucial infrastructure projects to help bridge them to more consumers from other provinces and cities in Luzon.

SM’s Clark complex stands near the Clark International Airport and Subic-Clark-Tarlac Expressway.

Soon, Clark will become more accessible to commuters through the planned North-South Commuter Railway (NSCR), which is slated for completion in 2029.

According to the Department of Transportation, the NSCR will have 35 stations linking Pampanga to Laguna province and may accommodate 800,000 passengers daily.

For its part, the SM Group itself is building a multimodal transport terminal.

“The transport terminal is seen to improve public access to and from Clark, particularly in anticipation of the NSCR’s completion, which will connect to the mall,” SMIC says.

The conglomerate notes that the terminal will connect to SM City Clark’s Sky Line, an elevated bridge way that will be a 10-minute walk away.

“By building a vibrant transport hub, SM aims to create a connection between Metro Manila and other cities in the northern region to promote local trade [and] tourism, with Pampanga as a key destination,” Tan says.

According to SMIC, SM City Clark was among the top five revenue generators of Clark Development Corp. (CDC), contributing 6 percent to the total.

“The impact of SM in terms of integrating economic activity and investments has been consistent,” shares a representative from CDC, the government-owned corporation tasked with managing and promoting CFEZ.