SM Investments Corp. is looking to spend P115 billion to P120 billion to expand its businesses this year, up by 43 to 50 percent from last year’s P80 billion.
Franklin Gomez, SM Investments senior vice president for finance, said bulk of the amount will go to the group’s realty business under SM Prime Holdings Inc.
The spending, however, excludes allocations for the group’s lending business, BDO Unibank Inc. and China Banking Corp.
“… SM Prime (has) been public about their intention to spend P100 billion this year so they will (have) the biggest component of our capex,” Gomez said at the sidelines of SM Investments’ shareholders meeting yesterday.
Frederic DyBuncio, SM Investments chief executive officer, said the group will continue to expand its presence nationwide, particularly in areas that provide opportunities in modern retailing, formal financial services and integrated property developments.
“Our strategy is to continue to expand coverage nationwide to create new markets that improve access to these sectors,” DyBuncio added.
SM Investments in a statement said SM Prime, is opening four new malls – one in Metro Manila and three in the provincial areas – this year. SM Development Corp. is planning to roll out 8,000 to 10,000 residential units this year in the northern part of the Philippines and across Visayas and Mindanao.
Alfamart, SM’s minimart grocery format, is set to increase the number of its stores by at least 400 in 2024.
BDO Unibank and BDO Network Bank are planning to increase branches by a combined 100 to 120 this year.
“Besides the growth of its core businesses, SM Investments is investing in emerging sectors through projects such as its commitment to supporting clean energy sources,” the conglomerate said.
Following its acquisition of the Philippine Geothermal Production Co., he group is set to explore new steam fields in Northern and Southern Luzon with the aim to double the company’s current steam production of 300 megawatts within the medium-term.
“For its contribution to renewable energy, the Board of Investments has awarded Green Lane Certificates to PGPC geothermal projects Daklan Geothermal Power Project in Benguet, Mt. Labo Geothermal Power Project in Quezon, Camarines Norte and Camarines Sur, Mt. Malinao Geothermal Power Project in Camarines Sur and Albayand Baua-Sikaw Geothermal Power Project in Cagayan. These projects are set to generate around 2,000 jobs during exploration and development, which will boost livelihood in each respective locality,” SM Investments said.
2Go Group Inc., meanwhile, remains on course in providing seamless logistics solutions.
With the addition of its two new ships setting sail, 2Go will have 10 roll on/ roll off passenger vessels and one freighter or a total of 11 ships in its fleet, serving 19 ports of call.
Airspeed, another logistics company, is also keen on expanding its distribution facilities in key cities along with opening more kiosks and collaborations with service providers to offer better customer options, wider network, and quicker delivery times.
“We expect our core businesses to continue its growth trajectory. Additionally, we anticipate that our portfolio investments will contribute significantly to our overall performance in the medium-term as these are well-positioned to capture opportunities in high growth sectors,” DyBuncio said.
