SM Prime Holdings Inc., the integrated property developer led by the Sy family, has earmarked up to P33 billion this year to expand its commercial property portfolio.

In a stock exchange report on Thursday, the company said the majority of the budget or about P21 billion will be set aside for the expansion and redevelopment of its mall network — a move seen benefiting Filipino mall goers.

The company plans to add 205,400 square meters of gross floor area (GFA) through new developments while 124,488 square meters of existing space will undergo renovation.

By year-end, SM Prime’s total mall GFA is projected to reach 8.08 million square meters.

Recognizing the growing potential of Philippine tourism, SM Prime is investing P6 billion in its hospitality and MICE (meetings, incentives, conferences and exhibitions) businesses. This includes the construction of two new convention facilities, hotel room renovations, and the expansion of food and beverage offerings in existing properties.

Demand picks up

SM Offices is allocating P6 billion to develop new office towers and workspaces in response to strong demand and increased lease take-up.

A key project under this plan is Six E-Com Center, a two-tower, Grade A office complex in the Mall of Asia Complex, designed to cater to technology-driven industries and business process outsourcing (BPO) firms.

According to SM Prime president Jeffrey C. Lim, the company, backed by strong financial support, will bank on the sustained consumer demand and the government’s forecast of over 6 percent economic growth to support its business.

“We expect moderating inflation, easing interest rates, and election-related spending to fuel our growth in 2025,” Lim said.

“Our malls should do well, and our office, hotel, and convention centers could provide additional upside,” he added.