By Sheldeen Joy Talavera, Reporter
SM SUPERMALLS is earmarking more than P150 billion in capital expenditure (capex) to fund major redevelopments and build new lifestyle malls over the next five years, its president said.
“We’re going heavy on redevelopment. That’s why we really allotted P150 billion in terms of capex. But that’s half-half for new malls and also for expansion and redevelopment,” SM Supermalls President Steven T. Tan said during a briefing on Thursday.
The capex will be financed through a combination of borrowings and internal funds.
The company said the investment covers 16 major redevelopments and 12 new lifestyle malls, as part of a portfolio-wide transition to greener, more innovative, and more people-centered destinations by 2030.
Among the properties to undergo redevelopment are SM Megamall in Pasig City and SM North Edsa in Quezon City, with an allocation of about P9 billion each.
For SM Megamall, Mr. Tan said the company will add more parking spaces and an indoor rooftop garden.
The company aims to modernize its existing malls with “open-air promenades, lifestyle zones and sustainable features.”
“It’s going to be very, very exciting because we also engage global architects to really help us develop all these malls,” Mr. Tan said.
For this year, the company said it is on track to open SM City La Union next month, while SM City Zamboanga’s opening has been moved to the first quarter of 2026.
“Because of some delays in the construction because of the distance. A lot of contractors are from Manila and they have some difficulty with the manpower. But I’ve seen the progress, and we’re ready to open that first quarter next year,” Mr. Tan said.
Over the next five years, SM is targeting the development of landmark flagship malls every year. These include SM Sta. Rosa in Nuvali slated for completion by 2026; Harrison Plaza in Manila by 2027; SM Malolos in Bulacan by 2028; Cavite by 2029; and Pasay by 2030.
Aside from building new malls, he said the company is relying on its redevelopment and expansion initiatives to meet its target of 100 malls in its portfolio by 2027.
“We’re not just growing here in Metro Manila or in Luzon, but we are also expanding our footprint all the way from Visayas to Mindanao. And we’re not just opening regular malls in those areas, we’re also opening flagship malls because if the market is ready, we’re there to serve them,” Mr. Tan said.
SM Supermalls, a unit of SM Prime Holdings, Inc., is one of Southeast Asia’s largest mall developers with 88 malls in the Philippines.
SM Prime shares rose by 1.32%, or 30 centavos, to P23 apiece on Thursday.