SM Prime drives growth with P100-B capex

SM Prime is going big again this year, rolling out a hefty P100 billion for expansion to keep its momentum strong.

In a stock exchange filing on Monday, the Sy-led company said the bulk of the budget will fuel SM Residences and integrated property developments, further expanding its footprint and reshaping skylines.

The sustained investment will drive the growth of its malls as the company banks on steady consumer demand and increasing corporate activity.

Growth drivers

"We expect election-related spending, easing interest rates, and higher tourism spending to fuel our growth in 2025. Our growth will be driven by the mall business, while our robust project pipeline will enhance the expansion of strategic initiatives across our diversified portfolio,” SM Prime president Jeffrey C. Lim said.

The sustained investment will drive the growth of its malls as the company banks on steady consumer demand and increasing corporate activity.

SM Residences and integrated property developments will receive more than half of the total budget or P67 billion, covering regional, premium, and leisure residential projects, as well as large-scale, mixed-use urban centers primarily in Luzon and Visayas.

Malls expansion

The company has set aside P21 billion to expand its malls, targeting an additional 205,400 square meters of gross floor area and redeveloping 124,488 square meters of existing space. SM Prime expects its total mall GFA to exceed 8 million square meters by year-end.