SM Prime Holdings Inc. is committing ₱500 billion in capital spending over the next five years to significantly expand and upgrade its real estate assets in a bid to fuel long-term growth and support regional development.
The strategic investment underscores SM Prime’s ambition to scale up its integrated property ecosystem — including shopping malls, residential communities, and urban estates — while sharpening its focus on asset efficiency and premium developments.
“Our approach is deliberate and forward-looking. Every project is meant to improve how Filipinos live, work, and connect,” said SM Prime president Jeffrey C. Lim.
The immediate pipeline includes over 316,000 square meters of new gross floor area across the mall portfolio and the redevelopment of more than 309,000 square meters of existing space. These upgrades aim to strengthen revenue generation from mature sites while enhancing the customer experience.
Three new malls — in Laoag, La Union, and Zamboanga — are set to open this year, reflecting the company’s expansion into underserved regional markets. “We have to keep on expanding and spending more because opportunities keep on growing,” SM Prime chairman Henry Sy Jr. said. “There are many who want to live, shop, and work in a better environment than what we have right now.”
The company is also positioning itself to move beyond its traditional mid-market base. Over the next five years, SM Prime will diversify into high-end residential offerings and premium urban developments. According to Lim, the strategy is a key growth driver leveraging synergies across the various property businesses.
The company plans to launch a new upscale residential brand in Metro Manila, with pricing starting at ₱15 million and scaling based on market conditions. Expansion to other locations will be demand-driven, said Jose Juan Z. Jugo, executive vice president for the premium residential segment.
“For certain developments that we have already planned and have strong confidence in, we will pursue them on our own,” Jugo added. “However, if the project requires additional expertise or broader organizational support, we are more than willing to bring in partners.”
SM Prime’s five-year investment plan signals a strong vote of confidence in the Philippine property sector’s resilience and growth potential. It also highlights the firm’s evolving strategy to move from being a dominant retail real estate player into a diversified, full-spectrum property developer.
