SM Prime Holdings Inc., one of Southeast Asia’s largest integrated property developers, said it will invest up to P33 billion in its commercial property segment this year, a reflection of the Sy Group’s expectations for sustained consumer demand growth and the growth of the economy.
“We expect the combination of moderating inflation, lower interest rates, and election-related spending to fuel growth in 2025. Our malls should perform well, and our office, hotel, and convention centers could provide additional upside,” said SM Prime President Jeffrey C. Lim, highlighting the company’s optimistic outlook.
A key factor driving SM Prime’s optimism is the anticipated economic stimulus from election-related spending. This cyclical driver is expected to boost retail demand, a sector in which SM Prime has a dominant presence, with 87 shopping malls strategically located across the country. These malls are poised to benefit from higher foot traffic and strong consumer confidence.
SM Prime is committing approximately P21 billion for mall expansion, targeting 205,400 square meters of new gross floor area, in addition to redeveloping 124,488 square meters of existing space. By year-end, the listed company expects its mall portfolio to reach a total GFA of 8.08 million square meters.
The company is also focusing on its hospitality and MICE (Meetings, Incentives, Conventions, and Exhibitions) sectors, earmarking P6 billion for two new convention centers, hotel renovations, and the addition of food and beverage facilities. The planned investment in its office business will support the development of new office towers like the Six E-Com Center, designed to cater to the booming BPO and tech industries.
With these investments, SM Prime is reinforcing its leadership in the commercial property sector, enhancing its offerings to attract businesses and meet evolving consumer demands.
