SM Prime sets P100-B spend plan in 2025

MANILA, Philippines — Real estate giant SM Prime Holdings Inc. intends to spend P100 billion this year to expand its network of malls, residential establishments and other developments amid expectations that consumer demand will improve.

SM Prime said in a regulatory filing on Monday that P67 billion of the amount would be set aside for SM Residences, its new residential brand, as well as integrated property developments (IPDs).

Residential projects include regional, premium and leisure properties while IPDs are large, mixed-use and master-planned urban centers that will be built in Luzon and the Visayas.

READ: SM Prime earnings reach record P45.6B

A total of P21 billion will be spent on expanding SM Prime’s mall gross floor area by 205,400 square meters (sq m) to over 8 million sq m by the end of this year.

The company will likewise redevelop 124,488 sq m of existing mall space.

The remaining P12 billion of the total capital outlays will be used to expand the capacity and improve the facilities of SM Prime’s office, hospitality and MICE (meetings, incentives, conferences and exhibitions) businesses.

This will cover the construction of two new convention facilities, renovation of hotel rooms and additional food and beverage stores in hotels.

At the same time, SM Prime will develop new office towers and workspaces, such as Six E-Com Center within the Mall of Asia Complex in Pasay City.

According to SM Prime, the expansion of Six E-Com, which mainly houses technology and business process outsourcing firms, is driven by “robust tenant demand for existing inventory.”

SM Prime president Jeffrey Lim explained that they were anticipating sustained growth in consumer demand and corporate activity, thus the P100-billion investment plan for the year.

“We expect election-related spending, easing interest rates and higher tourism spending to fuel our growth in 2025,” Lim said in a statement.

“Our growth will be driven by the mall businesses, while our robust project pipeline will enhance the expansion of strategic initiatives across our diversified portfolio,” he added.

The developer shattered its own earnings record in 2024 as rental income and sales boosted its profits.

SM Prime’s net income jumped by 14 percent to an all-time high of P45.6 billion as all its business units registered gains.

This came despite weakness in the country’s residential and office sectors last year, with both segments registering record-high vacancy rates.

Still, Lim pointed out that the company’s planned investments “positions us to meet evolving customer needs while driving SM Prime toward its next phase of growth.” INQ