[ bworldonline.com ]
By Arra B. Francia, Reporter
SM Prime Holdings, Inc. plans to open four malls in the provinces
this year, while ramping up its land banking efforts for the development
of more lifestyle cities in the future.
In a presentation posted on its website Wednesday, SM Prime said it
will open SM Center Dagupan, SM City Olongapo Central, SM City Butuan,
and SM Mindpro Citimall in Zamboanga City in 2019.
The new malls will have a combined gross floor area (GFA) of 179,000
square meters (sq.m.), bringing SM Prime’s shopping mall count to 76 in
the Philippines and seven in China.
The Sy-led firm will also be expanding SM City Baguio and SM City
Fairview, adding about 46,000 sq.m. and 32,000 sq.m. in GFA,
respectively.
The company noted that its new malls will be located in the provinces
moving forward, as part of its strategy to take advantage of the
economic growth in the regions.
“SM Prime’s mall expansion is geared toward the provinces. The focus
is to cover most of Northern Luzon, Visayas, and the progressive cities
in Mindanao,” the company said.
The company’s malls in Metro Manila currently account for 42% of its
GFA, 37% comes from Luzon, while 13% and 8% are in Visayas and Mindanao,
respectively.
Meanwhile, the firm does not have any new malls lined up in China
this year, where it operates seven malls covering a GFA of 1.3 million
sq.m. It noted, however, that future expansion plans will focus in
Fujian province.
Combined with its malls in China, SM Prime aims to end the year with
10.5 million sq.m. in GFA, nine percent higher year-on-year.
Meanwhile, SM Development Corp. (SMDC) looks to end the year with 72
projects, which will increase its sales by 10% to 21,145 units
year-on-year.
Majority of SMDC’s land bank is in the provinces, at 432 hectares, compared to only 82 hectares in Metro Manila.
SM Prime’s leisure homes unit meanwhile has six projects in the
pipeline this year, bringing its total number of units to 351, 32%
higher year-on-year. Its land bank covers 542 hectares in the provinces.
“(We will) increase acquisition of large-scale strategic land bank to
develop more lifestyle cities,” the company listed as one of its key
strategies for the year, adding that leisure projects are for
medium-term development.
For its commercial segment, SM Prime looks to end the year with 681,000 sq.m. across nine towers.
The hotel business will also be launching two new projects for the year, bringing its room count to 2,049.
“Our expansion program should allow us to sustain double-digit income
growth over the next three years. The growth will be driven by malls
and residential operations complemented by our other businesses,” the
company said.
SM Prime booked a net income attributable to the parent of P23.44
billion in the first nine months of 2018, 17% higher year-on-year. Gross
revenues meanwhile jumped by 15% to P74.56 billion.
Shares in SM Prime gained 0.63% or 25 centavos to close at P39.70 each at the stock exchange on Wednesday.
_____________________________________________
