SM Prime Holdings Inc. plans to transform the nine-hectare former Paskuhan Village in Pampanga province into a mixed-use development project.
SM Prime commercial properties group senior vice president David Rafael said the company was drawing up a master plan for the property’s integrated development with residential, commercial and office components.
Rafael said the SM Group purchased the property last year from the Tourism Infrastructure and Enterprise Zone Authority, or Tieza, as part of the agency’s asset privatization program.
SM Prime expects to launch the development of project over the next couple of years.
Opened in 1990, Paskuhan Village is a Christmas-themed park famous for being the only theme park in Asia where Christmas is celebrated year-round.
The park in 2012 became financially distressed, prompting all shops, restaurants and the Nature Sanctuary stopped operating.
Rafael said the SM Group was also on the lookout for more acquisitions for future development. The company is interested in developing another huge property in Manila and Cebu.
Meanwhile, Rafael said SM Prime had already completed the integrated master plan for the Pasay and Parañaque reclamation projects.
He said the masterplan was ready for presentation to the local government units of Pasay and Parañaque and their approval before its submission to the Philippine Reclamation Authority and National Economic and Development Authority.
He declined to divulge the details of the integrated master plan.
SM Prime earlier said it planned to integrate the developments of the two reclamation projects, with a combined 600-hectare mixed-use community, into a “future city.”
The company has contracted AECOM, the world’s largest engineering design company to draw up an integrated master plan for the Pasay and Parañaque reclamation projects that could cost over P100 billion.
SM Prime is spending P4.2 billion to build its fifth office building called FourE-ComCenter at the Mall of Asia complex in Pasay City.
Rafael earlier said the company was bullish about the prospects of the office leasing business, despite the current market volatility.
Rafael said demand for office space from the business process outsourcing industry remained strong as the slowdown in Europe and United States was forcing companies to look for ways to reduce costs by outsourcing some of their operations.
“The demand for office space remains aggressive, thanks to the continued economic growth of the country. Strong interest remains due to more investors realizing the potential of the Philippines for their business. Our job is to provide them with a good office space for their operations,” said Rafael.
The 16-story FourE-ComCenter will have 123,968 square meters of gross floor area and is expected to generate P700 million in gross rental revenues annually. The project is expected to be completed in 2019.