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SM Prime sets PHP75-B capex for 2018

Southeast Asian property giant SM Prime Holdings Inc. (SM Prime) expects capital spending of about PHP75 billion this year mainly to fund project development and land banking.

This year’s projected capital spending is 15 percent higher than previous year’s PHP65-billion spending.

“It’s more of buying new properties, land banking. Both malls, mixed-use (projects). This year, we are looking at seven malls to open and then about 12,000 to 15,000 units of residential (developments),” SM Prime President Jeffrey Lim told reporters at the sidelines of Philippine Retailers Association’s coffee table book launch Tuesday night.

Lim said the company plans to open seven new shopping malls outside Metro Manila, and start building one mall in China this year.

SM Prime has 67 malls in the Philippines and seven malls in China at year-end 2017.

“As of now, it’s only in China although we are looking at (other) countries but still (in) exploratory stage. Vietnam is one - mall and residential (projects),” he said.

Lim added it would be looking for a joint venture partner to expand overseas, noting “I think that’s the better option for us.”

SM Prime has issued PHP20-billion retail bonds to fund mall expansion and residential projects.

The property firm has business interests in malls, residences, commercial, hotels and convention centers.

Leslie Gatpolintan / PNA