SM Prime eyes property owned by Cebu government

SM Prime Holdings Inc. will bid for a 27,351-square meter property in Cebu as it beefs up its landbank to ensure its continued expansion and growth.

In a disclosure to the Philippine Stock Exchange, SM Prime said its board approved yesterday a proposal to participate in the bidding of a property owned by the Province of Cebu located along Gov. M. Cuenco Avenue in Banilad, Cebu City.

No other details were given by the mall developer.

SM Prime has an existing landbank of 1.75 million square meters in 12 locations.

SM Prime Holdings has 21 shopping centers with a gross floor area of over 2.2 million square meters. Last month, it opened its 21st mall, SM Valenzuela. SM Molino in Cavite, meanwhile, is set to open this month.

SM Mall of Asia – SM Prime’s biggest mall project to date with a total floor area of 454,000 square meters in the Manila Bay area – is slated for opening in the first quarter of next year.

It is envisioned as the country’s premier shopping destination and tourist attraction, revitalizing the Roxas Boulevard bay area. This year, SM Prime has earmarked P5 billion for the construction of new malls and acquisition of real estate properties for future expansion.

Despite weak consumer spending, SM Prime continued to post steady growth with its net profit growing by 10 percent in the second quarter this year, mainly due to higher rental revenues. Earnings reached P1.17 billion for the period April to June this year compared with only P1.07 billion the previous year-period.

On a year-to-date basis, SM Prime posted earnings of P2.41 billion or eight percent higher than the year earlier figure of P2.23 billion. Rental income from leases in the malls and food courts remained the major driver of growth, posting a 12-percent increase to P4.29 billion in the first half this year.

SM Prime is a member of the SM Group, a conglomerate with interests in property development, retail sale, wholesale and merchandising, banking and financial services, leisure and tourism and real estate sectors.