SM Prime Holdings Inc., one of the country’s largest shopping mall operators, is set to open three new malls by next year. It also plans launching a redevelopment of at least 10 existing properties. The expansion and renovation plans are aimed at adapting to the rapidly evolving retail environment and meeting the increasing demand of today’s consumers.
Steven Tan, president of SM Supermalls, earlier this week confirmed that the company will open new shopping centers in Laoag, La Union, and a second, much larger facility in Zamboanga City. Tan said the new Zamboanga mall would be a significant upgrade compared to its predecessor. “Last time, we just took over a small, SM City Mindpro which we renovated and opened. But this new one, we built it from the ground. It’s quite big,” Tan said. “Of course, it’s not the Megamall and the Mall of Asia, but it’s not a small mall either.”
In addition to the new mall openings, SM Prime is investing heavily in the renovation and redevelopment of some of its flagship properties, including the iconic Mall of Asia in Pasay. Tan mentioned that the redevelopment work at Mall of Asia would culminate in the opening of a “sky park,” featuring a FIFA-sized football field, early next year. The group is also revamping SM Megamall, with plans for a rooftop garden, and SM Aura, which has already unveiled a new food hall.
“We are starting already with Megamall which is being renovated, redeveloped and it would also have a garden on top,” Tan said. “Clark, we will also start redeveloping. There are so many projects. It’s more than 10 just for renovations and redevelopments next year, some of which are set for completion while others are in the early stages.”
SM Prime is also significantly boosting its capital expenditures for 2025, with a forecast of P110 billion, up from P100 billion this year. Jeffrey Lim, president of SM Prime, said the company could be slightly short of its 2024 target. “Our f(capex) orecast for this year is P100 billion, but I don’t think we’ll get to P100 billion actually,” Lim said.
The increased investments come as SM Prime seeks to stay ahead of rapidly changing consumer expectations. “We continuously evolve because consumers now are very demanding, especially millennials,” Lim said. “It’s not just about shopping and eating anymore. It’s about the experience when they go inside the mall. So, we have to provide a lot of amenities and bring in new concepts.”
A prime example of this shift can be seen at SM Mall of Asia, which has introduced game parks offering a variety of activities like bowling, basketball, billiards, and table tennis—all in one location.
Looking ahead, both Tan and Lim expressed confidence in SM Prime’s future prospects, with no major concerns for the remainder of the year. As the company invests in new developments and innovative experiences, it aims to remain a dominant player in the competitive Philippine retail market.
