SM Prime sets P35B to build 35 malls

By Honey Madrilejos-Reyes

Reporter

SM Prime Holdings Inc., the country’s largest  shopping mall owner, is spending P35 billion in the next five years to put up at least 35 new malls throughout the country and expand its current facilities. At the sidelines of the SM Prime’s stockholders’ meeting late Monday, president Hans T. Sy said the capital expenditure is consistent with the pace of its growth. This year, the company is spending P7 billion to build three new malls and fund the expansion of it malls in Cebu, Pampanga, Fairview and SM Mall of Asia. “The five-year capex does not include yet the land acquisitions,” Sy emphasized. Executive vice president Jeffrey Lim said the P35-billion capex would be equally financed by borrowings and internally generated cash. This year, SMPH would also set its sights at expanding in areas outside Metro Manila. “We  are building three new malls in the cities of Bacolod, Taytay and Muntinlupa. We are also expanding four of our existing malls, including the SM Mall of Asia,” Sy said. The Mall of Asia is considered the second-largest mall in Southeast Asia. SM Prime intends to expand the Mall of Asia’s existing facilities to accommodate a science museum and a planetarium. These additions, according to Sy, would happen on a 3,000-square meter lot and will be completed at the end of the year. SM Prime has set aside P250 million for the theme-based attractions. Next year, the company is  intends to allot P7 billion to finance the construction of new malls in the provinces of Tarlac, Bicol, Laguna and Bulacan, as well as in Marikina City in Metro Manila. SM Prime remains a major source of income for SM Investments Corp., the holding company controlled by the country’s wealthiest man Henry Sy. Its net profit for 2006 amounted to P5.45 billion as operating revenues of P13.2-billion increased by 21-percent over that of the previous year. This year, Lim said the company’s net profit would likely increase 10 percent to 13 percent on the back of higher consumer spending and the continued improvement in the country’s economy.

 

http://www.businessmirror.com.ph/04242007/companies01.html