SM Prime allots P80 billion for capex this year

MANILA, Philippines — Property giant SM Prime Holdings Inc. has earmarked P80 billion for capital expenditures this year to support the growth of its key businesses in the country.

The budget will be used to reach key provincial cities which demonstrated promising economic progress and for the expansion of its other businesses, SM Prime president Jeffrey Lim said.

SM Prime’s profit for the first quarter likely grew in the “mid-teens” level, Lim said.

“The Philippines is projected to register one of the fastest economic growth in Southeast Asia and this will definitely benefit key cities all over the country,”  Lim said.

“We want to take advantage of the fast growing provincial areas in the Philippines with increasing urbanization and commercialization stemming not only from robust domestic demand, but also from increasing investments in the country,” he added.

SM Prime opened SM Center Imus in Cavite last February, and is scheduled to open SM City Urdaneta Central in Pangasinan and SM City Telabastagan in Pampanga within the first half.

Through unit SM Development Corp. (SMDC), SM Prime intends to launch at least 15,000 residential units this year.

In addition, the company will continue developing high-rise building projects and expand its mid-rise building and single-detached house and lot projects.

In the first quarter, Lim said close to 30 percent of SM Prime’s total reservation sales for residential projects came from the Chinese market.

SM Prime will also open its third office building at the Mall of Asia Complex, the ThreeE-Com Center, as well as expand the Park Inn Hotel in Clark, Pampanga.