SM Prime to spend at least PHP50 billion to develop provincial cities
(25 April 2017. Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, plans to spend at least PHP50 billion per annum over the next two years to support its developmental goals. SM Prime allocates 80% of its capital expenditure on project developments, mostly for mall and residential development. The remainder is used for land banking.
“SM Prime will continue to expand its mall and residential businesses which are the major revenue drivers. We will further reach out to provincial cities as an integrated property developer and as a strategic partner, given the tremendous opportunities in light of higher government spending on infrastructure development across the country,” SM Prime President Jeffrey C. Lim said.
This year, SM Prime is scheduled to open five new malls in the Philippines, all of which are outside Metro Manila. These are: SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas. By the end of 2017, SM Prime will have 65 malls in the Philippines and seven malls in China with an estimated combined GFA of 9.2 million sqm. In the Philippines, 43% of our malls are located in Metro Manila, 35% in Luzon outside Metro Manila, 14% in Visayas and 8% in Mindanao.
For the residential group, SM Prime is slated to launch this year 15,000 to 18,000 residential units in high-rise and mid-rise buildings as well as house and lot developments. The company’s high-rise residences deliver attractive urban lifestyles that serve the growing needs of start-up families and young professionals. To address an even larger market and cut across other segments in the housing spectrum, SM Prime is expanding its product line-up to develop more mid-rise buildings and single detached house and lot within the year.
During its Annual Stockholders’ Meeting, SM Prime declared a cash dividend of 0.26 per share amounting to PHP7.5 billion in favor of all stockholders of record as of May 12, 2017 and payable on May 25, 2017. This is equivalent to a 35% payout of last year’s net income after tax.
SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.
For further information, please contact:
Vice President, Investor Relations
SM Prime Holdings, Inc.
Tel. no.: +632 862 7940