Property developer SM Prime Holdings Inc. said over the weekend it earmarked P80 billion in capital expenditures as it plans to open three new shopping malls and expand four this year.
SM Prime said in an investor presentation it would open SM City Grand Central in Caloocan City, SM City Daet in Camarines Norte and SM City Roxas in Capiz.
SM City Grand Central located along Rizal Ave. near the Light Rail Transit Line 1 Station in Monumento will replace the former Ever Gotesco Grand Central which was destroyed by fire in March 2012.
SM Prime also plans to complete the expansion of SM Urdaneta Central, SM City Sta. Rosa, SM City Cauayan and SM Mall of Asia Ikea.
The planned mall launches and expansion projects will add around 367,000 square meters of gross floor area to the group’s portfolio.
SM Prime had 76 malls with total GFA of 8.7 million sq.m. as of end-2020, after opening two malls ate last year―SM City Butuan and SM City Mindpro.
It also owns seven malls in China with total GFA of 1.3 million sq.m.
SM Prime’s malls cover almost all major cities in Metro Manila and adjoining towns and municipalities, accounting for 41 percent of the company’s total GFA in the Philippines.
It said future malls expansion was geared towards the provinces with focus on Northern Luzon, Visayas and the progressive cities in Mindanao.
It is scheduled to open the SM Mall of Asia Ikea Store by the second half of the year. It will become the world’s largest Ikea outlet with more than 109,000 sq.m. of GFA.
SM Prime reported consolidated income of P18 billion in 2020, down 52.7 percent from P38.1 billion in 2019 on lower mall revenues.
Consolidated revenues also went down by 30.7 percent to P81.9 billion from P118.3 billion in 2019.
Mall revenues went down by 59 percent to P23.6 billion in 2020 from P57.8 billion in 2019 as the quarantine restrictions affected mall operations.
Sales from residential business led by SM Development Corp. climbed 6 percent to P46.5 billion from P43.7 billion in 2019.
Residential reservation sales registered a 10 percent growth, bringing the sales take-up to P99 billion in 2020 from P90 billion in the previous year.
Revenues from commercial properties also posted a 4-percent growth to P4.8 billion in 2020 from the previous year’s P4.6 billion.
Its hotels and convention centers recorded P1.6 billion in revenues in 2020, a decline of 68.6 percent from P5.1 billion in 2019.
The company opened Olongapo City Convention Center in Zambales last year.
SM Prime raised P10 billion from the issuance of fixed-rate bonds last month on strong demand from retail and institutional investors.
The offering of P5 billion fixed-rate bonds with an oversubscription option for another P5 billion was eight times oversubscribed, it said.
SM Prime said it would use the net proceeds to finance the expansion of the mall and residential businesses.
Source: Manila Standard