SM Prime Holdings Inc. (SMPH) is investing P33 billion in 2024 to expand its commercial properties, driven by a positive economic outlook and strong consumer demand.
SM Prime Holdings Inc. (SMPH), a property developer led by SM Investments Corp., is planning to invest P33 billion this year to expand its commercial property portfolio. This significant investment is driven by the company's optimistic outlook for the Philippine economy, fueled by expectations of strong consumer demand and moderating inflation. SM Prime President Jeffrey C.
Lim stated, '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.' The company cites the government's forecast of over 6 percent economic growth this year and the anticipated boost in spending associated with the upcoming May elections as key factors supporting its bullish outlook. SM Prime's vast network of 87 shopping malls is strategically positioned to capitalize on this surge in consumer activity, backed by strong consumer confidence and increased foot traffic. A substantial portion of the P33 billion investment, P21 billion, will be allocated to expanding the gross floor area (GFA) of its malls. This includes developing new malls adding 205,400 square meters (sqm) and redeveloping existing spaces totaling 124,488 sqm. By the end of 2025, SM Prime projects a total GFA of 8.08 million sqm for its mall portfolio.Further investments will focus on enhancing SM Prime's MICE (meetings, incentives, conventions, exhibits) and hospitality offerings. Approximately P6 billion will be dedicated to constructing two convention facilities, renovating hotel rooms, and introducing new food and beverage options within existing hotels. An additional P6 billion will be channeled into developing new office towers and workspaces, including the Six E-Com Center, a two-tower, grade A office complex within the Mall of Asia complex designed to cater to technology-driven industries and business process outsourcing firms. SMPH reported a strong financial performance as of end-September last year, with a net income of P33.9 billion, representing a 12 percent increase from the previous year. Consolidated revenues reached P99.8 billion, up 8 percent year-on-year, with the mall business contributing over half of the total revenue. The residential business generated P31.2 billion in revenues, while other key businesses, including offices, hotels, and convention centers, added another P11 billion.
SM Prime Philippines Property Investment Economic Growth Consumer Demand Malls Office Development Hospitality MICE
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