SM Investments Corp. (SMIC) said it looks to spend P90 billion this year, most of which will be go it property development.
Frederic DyBuncio, SM Investments president, said the majority of SMIC’s expansion will focus on the regions particularly in emerging regional centers outside of Metro Manila.
“Our businesses are well-positioned and have clear strategies to participate in the country’s strong growth,” he said.
DyBuncio said SMIC’s growth prospects are looking “more vibrant” with a large chunk of the remittances from overseas Filipino Workers going to their families in the provinces.
“Increasing connectivity and the level of talent are also providing more impetus for expansion among business process outsourcing (BPO) firms in these areas. BPO revenues are also at par with OFW remittances in amounts that are estimated at over $30 billion,” he said.
DyBuncio said P80 billion of the amount will go to unit SM Prime Holdings Inc.’s pipeline of projects while the rest will go mostly to the development of SMIC’s retail business, particularly the Alfamart convenience stores.
On Wednesday, SM Prime said it will expand its key business units, particularly development of shopping centers, residential products and office spaces, “which will provide the company a stronger presence in major areas across the country.”
It plans to launch 15,000 to 20,000 residential units this year.
The retail business under SM Retail Inc., meanwhile will expand its store network to around 400 stores this year, largely from food retail and specialty retail stores.
