|
MANILA, Philippines - SM Prime Holdings Inc., the country’s largest retail landlord, is aggressively scaling up its operations to bring total gross floor area to 6.2 million square meters by end-2012.
Jeffrey C. Lim, executive vice-president and chief finance officer of SM Prime, said the company is opening five malls next year - in Gen Santos City, Sucat BF, Novaliches and Consolacion, Cebu.
Also slated for opening in 2012 is SM Chongqing in southwestern China. Estimated to cost around 900 million yuan, the project will cover a land area of over 66,700 square meters in the Liangjiang new district of Chongqing.
The expected end-2012 GLA is 19.2 percent higher than this year’s estimated GLA of 5.2 million square meters.
Later this year, SM Prime is set to open an expanded SM City San Fernando in Pampanga, SM City Olongapo in Zambales and SM City Suzhou in China to bring its total nationwide network to 43 and four in China by year end.
SM Gen. Santos City will be the group’s third largest among SM malls in Mindanao after SM City Davao renovated and SM Lanang also in Davao opened. It will rise on an eight-hectare leased prime property along Santiago Blvd and San Miguel within the central business district of Gen. Santos.
Lim said the company will also open SM Tianjin, its biggest mall to date with a floor area of 530,000 sqm., in the second quarter of 2014. The mall will feature three oval-shaped arch buildings, showcasing the latest and the best in mall design and build quality.
Also to open in 2014 is the P4.5-billion SM Seaside City Cebu, its fourth biggest shopping mall in the country. The new mall, with a gross floor area of 241,600 sqm, forms part of the P20-billion, 30-hectare integrated development project at South Road Properties (SRP) dubbed SM Seaside Complex. It is envisioned to become the biggest shopping mall in Cebu when completed in the second quarter of 2014.
SM Seaside City Cebu will be the group’s fourth biggest mall next to SM City North Edsa, Mall of Asia along Roxas Blvd. and SM Megamall in Mandaluyong.
The group’s retail sales in China have grown more than 11.5 percent in the past five years.
SM Prime intends to open at least one new mall per year in China.
By the end of 2014, SM Prime expects to have a total of 1.5 million sqm of mall GFA in China.
The three malls in China contributed P980 million or eight percent of total consolidated revenues. In terms of net income, they chipped in P210 million, accounting for five percent of total consolidated net earnings.
The SM China malls are enjoying healthy increases in rental rates, and much higher occupancy levels, particularly in SM Xiamen’s Lifestyle Center and SM Chengdu. Rental revenues jumped 57 percent to P950 million.
The average occupancy rate for the three malls in China is now at 91 percent.
SM Prime reported a 14 percent growth in net income in the first half this year to P4.27 billion on the back of new store openings and strong performance of its malls in China. Revenues rose 12 percent to P12.71 billion.
No comments:
Post a Comment