SM Prime Holdings Inc., the property unit of the Sy family, earmarked P80 billion for 2019 capital expenditures to support the company’s provincial expansion and land banking activities.
SM Prime said in a presentation posted on its website this year’s capital spending program would be funded by a combination of local borrowings and internal funds.
This year’s spending plan is slightly lower than the P91 billion it spent in 2018.
SM Prime plans to open four new malls and complete the expansion of two this year.
The new malls set to open this year are SM Center Dagupan with 23,000 square meters of gross floor area, SM City Olongapo Central with 72,000 sqm, SM City Butuan with 48,000 sqm and SM Mindpro Citimall in Zamboanga City with 53,000 sqm.
SM Prime will also complete the expansion of SM Baguio to add 32,000 sqm in GFA and SM City Fairview which will add 46,000 sqm.
SM Prime said that by the end of 2019, the mall business unit would have 76 malls in the Philippines and seven malls in China with an estimated combined gross floor area of 10.5 million square meters.
Meanwhile, the group’s residential business under SM Development Corp. is scheduled to launch 15,000 to 18,000 residential units this year that include high-rise buildings, mid-rise buildings and single-detached house and lot projects.
These projects are located in Metro Manila and other key cities in the provinces.
SM Prime is also set to open two new hotels, Park Inn by Radisson Iloilo and Park Inn by Radisson North Edsa in 2019.
Offering 200 rooms, Park Inn by Radisson Iloilo is situated right next to SM City Iloilo in Mandurriao while the 239-room Park Inn by Radisson North Edsa will be connected to SM North EDSA in Quezon City.
By 2019, SM Prime will have 2,059 hotel rooms under its portfolio.
For office development, SM Prime will launch NU Tower in 2019 with 46,000 sqm of GFA. This will boost the group’s office to nine with total GFA of 681,000 sqm.