SM Investments Corp., the holding company of the Sy family, earmarked P98 billion for 2019 capital expenditures to support the expansion of its real estate, banking and retail businesses.
SMIC said in an investor presentation property unit SM Prime Holdings Inc. would get the lion’s share of the capital spending at P80 billion.
It said of the amount, 55 percent or P44 billion would go to the development of new malls and expansion of existing ones. About 34 percent or P27 billion will be for the construction of high-rise and mid-rise residential projects and the remaining 11 percent or P8.8 billion will be for the completion of office and hotel projects.
The conglomerate will allocate P9 billion to P12 billion for banking units BDO Unibank Inc. and China Banking Corp. for branch expansion and IT enhancements.
SM Retail is spending P5 billion in 2019 to roll out new stores and renovate existing outlets.
SM Retail had 2,328 stores as of end-2018, including 63 department stores, 882 food retail outlets and 1,383 specialty stores with 2.89 million square meters of gross selling area.
SM Prime is slated to open four new malls this year to end with a total of 83 malls, including 76 in the Philippines and 7 in China. These malls have an estimated combined gross floor area of almost 10 million square meters.
SM Development plans to launch 15,000 to 18,000 residential condominium units while SM Prime is set to launch a campus-office building called NU Tower and the FourE-Com Center which are both located in the Mall of Asia complex in Pasay City in 2019 and 2020, respectively.
SM Prime will open two new hotels, Park Inn by Radisson-Iloilo and Park Inn by Radisson.