SM Prime building 21 new malls
Property developer SM Prime Holdings Inc. is staying aggressive on its expansion as it lined up 21 new malls for completion from 2018 to 2020, documents filed with the Securities and Exchange Commission show.
SM Prime, which prepared a P20-billion fixed-rate retail bond offering, aims to complete SM City Urdaneta Central, SM City Telebastagan, SM City Legaspi, SM City Ormoc and SM City Dagupan in 2018.
Documents showed SM Prime expected in 2019 to complete SM Daet, SM Butuan, SM Olongapo Central, SM Balanga Bataan, SM Sorsogon, SM Tagum, SM City Tuguegarao, SM Mindoro and SM Grand Central.
The property unit of the SM Group will launch SM City Roxas, SM Calamba Turbina, SM Tanza, SM San Fernando, La Union, SM Laoag, SM Zamboanga and SM Malolos in 2020.
Except for the SM Grand Central in Caloocan, all new malls will rise in provincial areas.
SM Prime also continues to implement its strategy of building business process outsourcing office towers next to shopping malls.
The company plans to build eight new office buildings, including one in SM Cagayan de Oro, two in SM Southmall, one in SM Fairview, one in SM Iloilo and two in SM North Edsa.
SM Prime said assuming the oversubscription portion of the planned bond offering was exercised, it planned to spend for the expansion of eight existing malls and the construction of Four Ecom Center at Mall of Asia complex in Pasay City.
Under the company’s five-year roadmap ending 2018, the group plans to have 75 malls with a total gross floor area of 10.5 million square meters.
SM Prime earlier announced plans to issue P15-billion, fixed-rate bonds with an over subscription option of up to P5 billion and maturities of 5 years and 7 years.
The latest bond offering comprises SM Prime’s third tranche of the P60-billion, three-year debt securities program approved by the SEC in July 2016.
If the entire P20 billion is issued, SM Prime would have still have P10 billion worth of unissued bonds under the debt securities program.
SM Prime tapped BDO Capital and Investments Corp., China Bank Capital, BPI Capital Crop., First Metro Investments Corp., PNB Capital and Union Bank of the Philippines as joint underwriters for the offering.