SM Prime Holdings, Inc., one of Southeast Asia’s largest property developers, is strategically reformatting and expanding its portfolio to optimize revenue streams across key business segments and ensure long-term growth.
Starting next year, SM Prime will consolidate all residential projects under its SM Residences brand, offering a comprehensive range of developments from economic to premium and leisure properties.
“Our growth over the past 30 years has largely been driven by our market-leading position in the mall and retail segments,” said SM Prime president Jeffrey Lim. “As we move forward, our goal is to unlock the full potential of our extensive land bank through SM Residences and more integrated developments. This will enable us to sustain long-term growth across a broader business portfolio,” he added.
SM Prime has allowed over 1,000 hectares for SM Residences projects over the next five years, with about 85 percent to be dedicated to horizontal developments. This expansion is in response to the growing demand for affordable, quality housing in the country.
The recent price ceiling adjustments by the National Economic and Development Authority and the Department of Human Settlements and Urban Development will allow SM Prime to target a broader segment of the housing market.
According to Lim, these adjustments will help address the housing backlog while contributing to affordable housing initiatives.
SM Residences’ premium line will also be launched early next year, starting with a 200-hectare development. Additional high-end projects priced between P25 million and P100 million are in the pipeline, catering to the demand in various sub-markets of the luxury segment.
For the first nine months of 2024, SM Prime reported a 12 percent increase in net income, reaching P33.9 billion on the back of robust mall segment, which continues to be the largest contributor to overall revenues.
