Property developer SM Prime Holdings Inc. unveiled a new roadmap designed to sustain a double-digit revenue growth over the next three years and expand its number of shopping malls, hotels, residential and office buildings.
SM Prime said in an investors presentation posted on its website the group aimed to have 10.8 million square meters of gross floor area across all its shopping malls by 2022, up from 9.3 million sqm as of end-2017.
It said at least 86 percent of the targeted 10.8 million sqm of GFA would be from Philippine malls and the remaining 16 percent from China malls.
The company said that in 2018, it was expecting to have 9.6 million sqm of retail space with the opening of five malls: SM Center Imus, SM City Urdaneta, SM City Telabastagan, SM City Legazpi, and SM Center Ormoc.
SM Prime said for its residential business, it was aiming to have 82 residential and 30 leisure projects by 2020, up from 49 residential and 16 leisure projects as of end-2017.
SM Prime said it planned to ramp up residential sales to 22,852 units by 2020, up from 17,259 units sold in 2017.
It said that in terms of office development, it planned to have 10 office buildings with 793,000 sqm of leasable space by 2020, up from seven buildings with 456,000 sqm as of end-2017.
SM Prime said for its hotel portfolio, it was targeting to have 2,460 rooms from 10 hotel projects by 2020, up from 1,501 rooms from six hotel projects as of 2017.
“Our expansion program should allow us to sustain double-digit growth over the next three years. The growth will be driven by malls and residential operations complemented by our other businesses,” SM Prime said.
The property developer also aims to end 2018 with 56 residential projects, 594,000 sqm of office space from eight office towers and 1,510 hotel rooms from six projects.
SM Prime has a landbank of 1,279 hectares across 139 sites that could be developed over the next five to seven years.
SM Prime unveiled a five-year roadmap in 2013 that would be completed in 2018. The group then committed to spend P400 billion to support the expansion program.
SM Prime saw its net income go up 16 percent in the first half to P16.6 billion from P14.39 billion a year ago, on double-digit growth of mall revenues and residential sales.
First-half consolidated revenues increased 15 percent to P49.77 billion from P43.25 billion in the same period last year.