SM group allots P80B for 2014 expansion
MANILA, Philippines – SM Investments Corporation (SMIC), the holding firm of the Philippines' richest man Henry Sy, is spending P80 billion for capital expenditures this year, an increase of 23% from P65 billion in 2013, to fund the expansion of its property, retail and banking businesses.
Most or P70 billion of the amount would be spent for projects of property arm SM Prime Holdings Inc., P5 billion to P6 billion for retail operations, and the rest for banking subsidiaries Banco de Oro Unibank Inc. and China Banking Corporation, according to SMIC investor relations head Cora Guidote.
SM Prime is the largest integrated mixed-use property developer in Southeast Asia. It was the surviving entity in the merger of all of the SM group's property businesses last year. (READ: SM group creates property behemoth)
The company is raising P20 billion through the issuance of retail bonds, and $300 million in debt for its residential, shopping mall and tourism-related projects.
SM Prime plans to open 2 malls, SM Cauayan (Isabela) and SM Angono (Rizal), and expand 3 existing malls, namely SM Lipa, SM Bacolod and SM Megamall, this year. It will also launch 3 residential projects.
In China, it acquired a 10-hectare property in Jiangsu province for a new mall, and it is looking at 2 to 3 more locations.
At present, SM Prime has 5 malls in China. It will open its 6th mall, SM Zibo, later this year, and its 7th, SM Tianjin, next year.
Other projects include a hotel in Clark, Pampanga under the Park Inn brand, and an office building across SM North Edsa in Quezon City. – Rappler.com