SM Investments Corp. sees capital spending for the year to hit P90 billion, up 28.57 percent from the prior year’s P60 billion to P70 billion.
Franklin Gomez, SM Investments Corp. senior vice president for finance, said of the amount, bulk goes to realty arm SM Prime Holdings Inc..
On Tuesday, SM Prime announced a capital expenditure of P80 billion.
Banking and retail will get P5 billion each, Gomez said at the sideline of the company’s stockholders meeting yesterday.
Gomez said SM Investments has ample cash to finance its capital spending for the year as most of its units, particularly SM Prime, have excellent cash generation machines.
Frederic Dybuncio, SM Investments president, said the company continues to look for investment opportunities that will create value and growth for the SM Group.
These are companies with very high growth potential and cater to a huge and underserved customer base and with a strong synergy with SM Group’s core business.
“To bolster our expansion, we made investments in of 30.5 percent stake in leading Philippine end-to-end logistics company, 2Go Group Inc. and 61.2 percent in dormitory provider to young urban professionals, Philippines Urban Living Solutions Inc. in 2017. We intend to help them grow and to look for more emerging sector investment opportunities like these,” Dybuncio said.
“Moving forward, we will continue to capitalize on our strengths and take advantage of the robust domestic economy to create growth. Our core businesses face positive market conditions and expansive opportunities for new market development across the country while our new investments offer us additional long-term growth,” he added.