SM Prime Holdings Inc. is looking to spend P80 billion as capital expenditures this year.
The company is likewise firming up plans for its real estate investment trust (REIT) where the company eyes to raise $1 billion in proceeds.
Jeffrey Lim, SM Prime president, said the capex will be used for expansion of 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.”
SM Prime will use the proceeds of the REIT sales to fund the group’s 360-hectare reclamation beside its Mall of Asia complex in Pasay City.
Lim said the company plans to initially infuse about 12 to 15 malls into the REIT which will have a valuation of $3.5 billion to $4 billion.
Lim said the company has firmed up which assets will go into the REIT and is only finalizing the timing of the sale, possibly within the year.
Lim said the mall selection comes from the 30 to 35 fully mature malls which also have some office space components.
SM Prime is scheduled to open this year three new malls, which coupled with the expansion of existing ones will add 200,000 square meters to the company’s gross floor area.
The company also plans to launch 15,000 to 20,000 residential units this year.
“Likewise this year, SM Prime is set to launch Lanson Place Hotel and Serviced Suites in Mall of Asia Complex in Pasay City,” the company also said.
