By Zinnia B.
dela Peña (The Philippine Star) | Updated February 1, 2013 - 12:00am
MANILA,
Philippines - Shopping mall giant SM Prime Holdings Inc. is planning to raise
around $200 million through a syndicated loan facility to bankroll its aggressive
expansion here and in China, a company official said.
In an
interview, SM Prime chief financial officer Jeffrey Lim said the company is in
talks with several financial institutions for a syndicated loan transaction,
targeted in the first or second quarter this year.
Lim said the
company remains on an expansion binge to capitalize on a booming economy and
robust consumer spending.
The firm has
set a P63-billion three-year capital spending program to build up to 18 malls
in its bid to become a regional player.
SM Prime may
spend P21 billion each year to build four to five new malls at home and one
mall annually in China.
SM Prime
ended 2012 with 46 malls across the country and five in China, with an
estimated combined gross floor area of 6.3 million square meters.
The SM China
malls are enjoying healthy increases in rental rates with occupancy level
currently at 95 percent.
SM Prime
continues to sees vast opportunities in China given the latter’s growing
population and emerging middle-class.
The group is
currently looking to acquire five properties in its second biggest market to
further widen its geographical footprint.
The expansion
is also in line with the SM Group’s strategy to list its China assets either in
Hong Kong or Singapore by 2015 in a public offering that could fetch up to $500
million.
______________________________________________________
