MANILA, Philippines – Sy family-led property developer SM Prime Holdings Incorporated is investing P100 billion in 2025, with around a fifth of its capital expenditures going to three new malls that are opening this year and the renovation of some existing mall spaces.
In a disclosure on Monday, February 24, SM Prime also said it expects spending in the May elections to boost its growth this year after it attained a record profit of P45.6 billion in 2024, 14% higher than the P40 billion in 2023.
SM Supermalls president Steven Tan earlier attributed last year’s record earnings to a growing Philippine middle class and record remittances by Filipinos overseas.
SM Prime also registered an all-time high of P140 billion in consolidated revenues in 2024 from P128 billion in 2023 due to higher rental income, real estate sales, and revenues from services and other offerings.
The November box-office hit Hello, Love, Again of ABS-CBN’s Star Cinema and GMA Films was one of the contributors to SM Prime’s record earnings given that it is the Philippines’ largest cinema operator with 393 cinema screens. Other movie hits in 2024, also in the last quarter, were the Hollywood films Wicked and Moana 2.
“We expect election-related spending, easing interest rates, and higher tourism spending to fuel our growth in 2025,” said SM Prime president Jeffrey Lim.
“Our growth will be driven by the mall business, while our robust project pipeline will enhance the expansion of strategic initiatives across our diversified portfolio,” he added.
SM Prime, one of Southeast Asia’s largest property developers with 87 malls in the Philippines and eight in mainland China, said capital expenditures this year will be prioritized for malls, residences, and integrated property developments.
The company said it has earmarked P21 billion for mall expansion and redevelopment; P67 billion for its SM Residences projects; and P12 billion for office, hospitality, and MICE (meetings, incentives, conferences, and exhibitions) expansion and enhancements.
Tan recently told the ABS-CBN News Channel (ANC) they would be opening three new malls this year: SM City La Union in April or May; SM City Laoag in Ilocos Norte; and SM City Zamboanga.
The three new malls will add 205,400 square meters in gross floor area (GFA). An additional 124,488 square meters will come from redevelopment of existing mall spaces such as the renovation of SM Megamall, which will add 20,000 square meters to the mall in Mandaluyong City.
SM Prime’s priority for mall development is now outside Metro Manila, especially progressive cities in Northern Luzon and Mindanao. It already has malls in almost all the key cities in Metro Manila which accounts for 42% of its total GFA in the Philippines.
Tan also said in the ANC interview that they see a lot of opportunities outside the capital region.
SM Prime is the Philippines’ largest mall operator and developer with 9.4 million square meters of GFA. At least 3.7 million people visit its 87 malls daily.
For its office projects in 2025, SM Prime said its new office towers and workspaces include Six E-Cam Center in its Mall of Asia Complex. This office tower is for “technology-driven industries and BPO firms.”
“These planned investments position us to meet evolving customer needs while driving SM Prime toward its next phase of growth,” Lim said.
In 2024, SM Prime opened a new mall in Caloocan City and a Japan-themed mall in Mandaue City, Cebu. – Rappler.com
