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Wednesday, July 9, 2025
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SM Prime plans to spend P33b in 2025 to build malls, hotels, offices

Property developer SM Prime Holdings Inc. (SMPH) plans to invest up to P33 billion in 2025 to expand its commercial property businesses including malls, hotels and offices.

SMPH is ramping up its investments as it anticipates continued the rebound of consumer demand and the domestic economy.

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“We expect moderating inflation, easing interest rates and election-related spending to fuel our growth in 2025,” SMPH president Jeffrey Lim said.

“Our malls should do well and our office, hotel and convention centers could provide additional upside,” Lim said.

SMPH said election-related expenditure would stimulate demand and spending across various sectors.

SMPH allocated about P21 billion this year to expand the gross floor area (GFA) of shopping malls. This involves adding 205,400 square meters through new developments and redeveloping 124,488 square meters of existing space.

SMPH expects that by end-2025, the total GFA of its malls would reach 8.08 million square meters.

It is investing around P6 billion in the hospitality and meetings, incentives, conferences and exhibitions (MICE) sectors as it banks on the potential growth of the tourism sector.

The investment will finance the construction of two convention facilities, the renovation of hotel rooms and the addition of new food and beverage facilities in existing hotels.

SM Offices will also invest P6 billion to develop new office towers and workspaces. These include the Six E-Com Center—a two-tower, Grade A office complex within the Mall of Asia Complex in Pasay City. This office building will be designed to cater to technology-driven industries and business process outsourcing (BPO) firms.

SMPH said these investments reflect its commitment to expanding and enhancing its commercial properties to drive growth, attract businesses, and meet evolving consumer demands.

SMPH in December 2024 reported plans to raise up to P25 billion from the issuance of fixed-rate bonds. The offering consists of 3-year Series Y Bonds due 2028, 6-year Series Z Bonds due 2031 and 10-year Series AA Bonds due 2035.

The bonds represent the second tranche of the company’s P100-billion bond shelf registration program approved by Securities and Exchange Commission in June 2024.

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