Property developer SM Prime Holdings Inc. (SMPH) remains bullish on its residential and commercial business as it plans to open five new shopping malls in 2025 and maintain condominium launches.
SMPH president and chief executive Jeffrey Lim said in a recent interview the new malls would open next year in La Union; Zamboanga City; Laoag City; Sta. Rosa, Laguna; and an unidentified area.
This will bring SMPH’s mall portfolio in the Philippines to 92 by end-2025, up from 87 this year. The group also operates seven malls in China.
The planned store opening is aligned with the group’s target to have 100 malls by 2026 or 2027.
Meanwhile, Lim said the group remains positive about the residential sector despite continued weakness in the housing market, particularly in National Capital Region amid high inflation and high-interest rate environment and following the exit of Philippine offshore gaming operators (POGOs).
Lim said most of the launches by SM Development Corp. are geared towards the provincial areas as demand for housing projects in these areas remained strong. Lim said the company is also focused on disposing its existing inventory.
“So the target is to bring it down to 12 months this year is possible from 16 percent,” Lim said.
Lim said that to attract homebuyers, the company continues to offer extended payment terms and other incentives.
He said the company is also looking at introducing new product lines to lure more buyers.
Lim said SMPH would not likely spend the P100-billion target capital expenditures for 2024.
“I don’t think we all get to P100 billion,” Lim said.
SMPH earlier set aside P100 billion for 2024 capital expenditures primarily to support the expansion plans of core businesses.
SMPH opened its 87th mall in Mandaue, Cebu in October.
