SM Prime Boosts Malls and Commercial Property Portfolio with P33 Billion Investment

SM Prime Holdings, Inc. (SM Prime), one of Southeast Asia’s largest integrated property developers, is investing up to P33 billion this year on its commercial property businesses, driven by expectations of a sustained recovery in consumer demand and forecast of over 6% growth by the Philippine government.

"We expect moderating inflation, easing interest rates and election-related spending to fuel our growth in 2025. Our malls should do well and our office, hotel and convention centers could provide additional upside," said SM Prime President Jeffrey C. Lim, highlighting the company's strong outlook.

Election-related expenditures, a cyclical driver of economic expansion in the Philippines, are anticipated to stimulate aggregate demand and spending in various sectors, particularly retail. SM Prime’s extensive network of 87 shopping malls is strategically positioned to capture this surge, bolstered by strong consumer confidence and increased foot traffic.

SM Prime has earmarked approximately P21 billion for the expansion of its malls' gross floor area (GFA). New developments will add 205,400 square meters of GFA, while 124,488 square meters of existing mall space will undergo redevelopment. The company anticipates a year-end total GFA of 8.08 million square meters for its malls portfolio.

Recognizing the potential of Philippine tourism, SM Prime will invest around P6 billion in its hospitality and MICE businesses to build two convention facilities, renovate hotel rooms and add new food and beverage facilities in existing hotels.

Driven by robust demand and gains in lease take-up of existing inventory, SM Offices is investing P6 billion to develop new office towers and work spaces, which includes Six E-Com Center, a two-tower, Grade A office complex within the Mall of Asia Complex. Six E-Com Center is designed to cater to technology-driven industries and business process outsourcing (BPO) firms.

SM Prime’s investments underscore its commitment to expanding and enhancing commercial properties that drive growth, attract businesses and meet evolving consumer demands, solidifying its leadership in the property sector.