SM Prime Holdings Inc. said it will spend more than P4 billion to add some 70,000 square meters of gross floor area to its three shopping malls, all to be finished by the end of the year.
The projects will introduce a broader mix of retail, dining, entertainment and commercial offerings, brands and concepts making their debut in these markets.
‘The cities of Iloilo, Sto. Tomas and Naga are major economic hubs in their respective regions, with strong potential to attract more businesses and investment,’ Jeffrey C. Lim, the company’s president, said.
‘Through these mall expansions, we aim to support their continued growth by creating more opportunities for MSMEs [micro, small and medium enterprises], generating local employment and contributing to stronger communities.’
The largest of the three projects is the SM City Iloilo North Block, which was allotted P1.7 billion for the addition of about 35,000 square meters of gross floor area as part of a mixed-use development.
The expansion will provide more accessible covered multi-level parking, new ground-floor retail spaces for essential services, medical and wellness services, specialty stores, convenience store, cafe and a National University campus.
In Batangas, SM City Sto. Tomas will spend P1.2 billion to add more than 26,000 square meters through the construction of a third level.
The expansion will introduce amusement concepts, restaurants, wellness establishments and retail stores. The new level will also include a dedicated Trade Hall, co-working and meeting spaces and visual installations. Additional surface parking will be developed to support the mall’s increased capacity.
SM City Naga, meanwhile, will undergo a two-storey expansion covering approximately 9,000 square meters. The company will spend P1.2 billion for the expansion.
The project will integrate additional parking and roof deck extension while redeveloping existing tenant areas to improve circulation and the overall customer experience.
In line with SM Prime’s sustainability commitments, the three expansions will feature energy-and water-efficient systems, solar panels, EV charging stations and enhanced waste management facilities to reduce resource use across their operations. Local residents will also be prioritized for employment opportunities created by the projects.
The company recently reported that its income in January to June came in flat at P24.5 billion compared with the previous year’s P24.45 billion, as costs and expenses eclipsed revenue growth.
Total revenues rose 5 percent to P71.7 billion from P68 billion, with rental income from malls, offices, hospitality and MICE accounting for 61 percent.
Lim said the company is targeting to at least match last year’s income of P48.84 billion. Real estate sales for the period contributed 27 percent, while cinema ticket sales, food and beverage, amusement and related offerings generated the remaining 12 percent.
Costs and expenses during the same period increased 6 percent to P35.6 billion from P33.6 billion, due to higher depreciation and amortization charges, fixed overhead costs and construction expenses.