MANILA, Philippines – SM Investments Corporation (SMIC), the holding company of the country’s richest man Henry Sy, is spending as much as P85 billion ($1.81 billion) this year, mainly to build new malls as well as office and residential buildings in the Philippines.
Jose Sio, executive vice-president and chief financial officer of SMIC, said his group’s capital expenditure (CAPEX) for 2016 is about P80 billion ($1.71 billion) to P85 billion ($1.81 billion) – similar to what it had earmarked in 2015.
“Only a third of our capex will be funded by financiers. It will be funded through internally generated sources and other capital raising initiatives such as bond issuances and loan availments,” Sio told reporters on the sidelines of SMIC’s 2016 annual stockholders’ meeting at Conrad Manila, Pasay City on Wednesday, April 27.
Jeffrey Lim, executive vice-president of SM Prime Holdings, Incorporated, said P60 billion ($1.28 billion) of SMIC’s CAPEX will go to his real estate group. (READ: Why Sy-led SMIC overtook MVP-led PLDT as PH’s most valuable firm)
Aggressive expansion plans
For 2016, SM Investments said its core units will continue aggressive expansion plans.
During the stockholders’ meeting, Lim said SM Prime will be opening 5 new malls in the Philippines.
Lim added that SM Prime also plans to expand SM City Calamba in Laguna and SM City Naga in Bicol.
“By yearend, SM Prime will have a total of 67 malls, 61 in the Philippines and 6 in China with an estimated 8.6 million square meters of gross floor area,” SMIC said in its 2015 annual report.
Other than the malls, SM Prime also plans to launch about 11,000 to 14,000 residential units in Quezon City, Bicutan, Sucat, Las Piñas, and Pasay.
It is also set to launch new mixed-use developments in Bulacan, Pampanga, and Cavite.
SM Prime is currently constructing Three E-Com Center and Four E-Com Center in the Mall of Asia Complex, which are scheduled for completion in 2017 and 2019, respectively.
SMIC said Conrad Manila in the Mall of Asia Complex in Pasay City is expected to open in the first half of 2016.
“The property group’s land banking initiatives will continue in 2016,” SMIC said.
SM Retail, meanwhile, will be opening 3 department stores, two supermarkets, 18 Savemore branches, and two hypermarkets.
The SMIC board has also approved the declaration of 50% stock dividends based on the company’s 2015 consolidated net income.
The terms of and conditions of the stock rights offering, however, have yet to be finalized.
In 2015, SM Investments’ consolidated net income stood flat at P28.4 billion ($606.38 million), while revenues grew 7% to P295.9 billion ($6.32 billion) from a year ago level.
Excluding extraordinary items, the company’s recurring net income jumped 13% in 2015 as income from operations increased by 8.5% to P56.9 billion ($1.21 billion) from P52.5 billion ($1.12 billion) in 2014. – Rappler.com
$1 = P46.83
There are no comments yet. Add your comment to start the conversation.