By Jenniffer B. Austria | Sep. 27,
2015 at 11:10pm [ manilastandardtoday.com]
SM Prime Holdings Inc., the country’s
largest integrated real estate developer, said capital expenditures in 2016
will reach P65 billion, higher than P64 billion programmed spending for this
year.
SM Prime said in a regulatory filing
it would earmark about 52 percent of the 2016 capital spending for shoppings
malls, 38 percent for residential, 7 percent for commercial and 3 percent for
hotels and convention centers.
“SM Prime plans to fund its capital
expenditure through recurring income flows and external financing,” the
property developer said.
The company said its mall expansion
plans were geared towards major cities outside Metro Manila. It said per capita income and rent per square
meter in several cities were already comparable to Metro Manila, as business process
outsourcing companies expanded to the provinces.
The group said it still planned to
expand in Metro Manila, by developing supercenters, or malls consisting of less
than 100,000 square meters of leasable space.
“SM Prime believes that the current
demand backlog for leases in several of its developments provides an
opportunity for further mall expansion,” the company said.
SM Prime said in 2016, it planned to
open six new malls, including SM City San Jose Del Monte with 114,186 square
meters gross floor area, SM Commonwealth with 20,877 sqm, SM City Trece
Martirez with 49, 498 sqm, SM Tuguegarao
with 16,181 sqm, SM City Puerto Princesa with 58,168 sqm and SM Urdaneta with 58,168
sqm.
It will also expand two malls,
including SM City Calamba and SM City Sucat with 62,000 sqm and 78,000 sqm of
GFA, respectively while SM Molina and SM Sucat would be renovated.
SM Prime will also open three new
malls in 2017, including SM Cagayan de Oro with 28,971 sqm, SM Caloocan with
102,086 sqm and SM Dagupan with 87,366 sqm.
SM Prime had 53 malls in the
Philippines and five malls in China as of end-June.
It is the largest integrated real
estate developer in Southeast Asia by market capitalization and the the largest
shopping mall developer in the Philippines in terms of gross leasable space.
Share price of SM Prime ended the week
at 19.84, down P2.51 from previous week’s close.
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