SM Prime to invest P33B in 2025 for malls, hotels, and offices

SM Prime Holdings Inc. (SMPH) is set to invest up to P33 billion in 2025 to expand its commercial property portfolio, including malls, hotels, and office developments.

SMPH President Jeffrey Lim said the company is ramping up investments in anticipation of continued economic growth, fueled by moderating inflation, easing interest rates, and election-related spending.

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

Of the total investment, SMPH is allocating P21 billion to expand its mall footprint, adding 205,400 square meters of new space and redeveloping 124,488 square meters. By the end of 2025, the company expects its total gross floor area (GFA) to reach 8.08 million square meters.

Another P6 billion will be directed toward the hospitality and MICE (meetings, incentives, conferences, and exhibitions) sectors, funding two new convention centers, hotel renovations, and additional food and beverage facilities.

SM Offices will also invest P6 billion in developing new office spaces, including the Six E-Com Center at the Mall of Asia Complex in Pasay City, catering to technology-driven industries and business process outsourcing (BPO) firms.

In line with its expansion plans, SMPH previously announced a P25-billion bond issuance as part of its P100-billion shelf registration program approved by the Securities and Exchange Commission.

The company’s aggressive investment strategy reflects its confidence in the Philippine economy and its commitment to strengthening its position in the commercial property sector.