SM Prime Holdings Inc. has announced plans to construct five new shopping malls in 2025, all strategically located outside Metro Manila. Jeffrey C. Lim, company president, confirmed the proposed site development in La Union and Laoag in northern Luzon, Zamboanga in Mindanao, and Sta. Rosa in Laguna, with the fifth location yet to be determined.
The company is setting aside up to P110 billion for the expansion projects next year, which will include both new malls and the enhancement of existing properties. “While our forecast capital expenditure this year is P100 billion, we anticipate not hitting the amount as it serves more as a guideline,” Lim said, noting that the first half of the year has seen the company meet its targets.
Looking ahead, Lim expressed confidence in the stability of the market, although he highlighted the impact of typhoons on the Naga mall in Bicol. “Our development is elevated by about one to one and a half meters, which helped avoid flooding. However, accessibility issues due to flooding in the area were problematic, particularly affecting our water supply,” he said.
As for the proposed establishment of a real estate investment trust (REIT), Lim said the company would revisit the idea as interest rates decline, but confirmed this would not be pursued this year. “Next year may be a possibility, depending on market conditions,” he said. Lim emphasized the importance of the REIT’s size and liquidity to attract foreign investors, saying they aim for a size of around $1 billion, without exceeding the 40 percent stake sale.
In May, SM Prime Holdings and its parent firm established a $3 billion European multi-issue medium-term note program facilitating access to the offshore bond market to fund future growth. Lim said, “We have alternative funding options, and while a REIT is a consideration, it is not our priority as we have sufficient resources for our expansion plans.”
