SM Prime investing P33B to boost mall, commercial space portfolio

Property giant SM Prime Holdings Inc. will spend P33 billion this year to further expand its mall and commercial space portfolio.

In a disclosure to the Philippine Stock Exchange on Thursday, SM Prime said it earmarked P21 billion for the expansion of its malls' gross floor area (GFA).

The company said new developments will add 205,400 square meters of GFA, while 124,488 square meters of existing mall space will undergo redevelopment.

The company anticipates a year-end total GFA of 8.08 million square meters for its mall portfolio.

Banking on the potential of Philippine tourism, SM Prime added it will invest around P6 billion in its hospitality and MICE (meetings, incentives, conferences, and exhibitions) segment “to build two convention facilities, renovate hotel rooms, and add new food and beverage facilities in existing hotels.”

Moreover, the Sy-led property developer is setting aside another P6 billion to develop new office towers and workspaces, which includes the Six E-Com Center, a two-tower, Grade A office complex within the Mall of Asia Complex in Pasay City.

"We expect moderating inflation, easing interest rates, and election-related spending to fuel our growth in 2025. Our malls should do well, and our office, hotel, and convention centers could provide additional upside," said SM Prime president Jeffrey Lim.

Election-related expenditures are expected to stimulate aggregate demand and spending in various sectors, particularly retail, according to SM Prime.

SM Prime said its network of 87 shopping malls is strategically positioned to capture this surge, bolstered by strong consumer confidence and increased foot traffic.

The company said its investments underscore its commitment to expanding and enhancing commercial properties that drive growth, attract businesses, and meet evolving consumer demands, solidifying its leadership in the property sector. —VBL, GMA Integrated News