SMIC to spend P54 B for mall, property dev't

MANILA, Philippines - Aiming to sustain its double-digit growth, SM Investments Corp. (SMIC), the listed holding firm of the family of retail tycoon Henry Sy, has earmarked around P54 billion for capital spending this year, higher than the P43 billion capital budget in 2011.

SMIC chief finance officer Jose T. Sio said bulk of the programmed capital outlay this year, or around P40 billion, will come from internally-generated cash while P14 billion will be funded by way of equity or debt issue by the group.

This year’s spending budget, the highest ever for the company, will mostly go to mall development and construction of residential and office buildings, Sio said.

He said remittances from Filipinos working overseas would continue to underpin growth across the group’s core businesses.

SMIC owns stakes in mall giant SM Prime Holdings Inc., property firm SM Development Corp., and lenders Banco De Oro Unibank and China Banking Corp. It also holds a 17 percent stake in Atlas Consolidated Mining and Development Corp.

In the nine months ending September last year, SMIC grew its net income by 13.6 percent to P14.2 billion on higher revenue across all its businesses.

SM Prime, the country’s largest retail landlord, has allocated P21 billion for its expansion here and in China. On the homefront, the company is slated to open five new malls this year: in San Fernando in Pampanga, Olongapo in Zambales, Lanang in Davao, Gen. Santos in South Cotabato, and Consolacion in Cebu. 

These would bring the group’s total branch network to 46 malls with a total gross floor area of 5.7 million square meters.

Outside the Philippines, the group is opening SM Chongqing, its fifth mall in China which will have a gross floor area of 146,323 square meters.

SMDC, meanwhile, is spending P20.7 billion to launch four to five new residential projects.

SMIC’s hotels and convention centers segment is targeting 1,000 hotel rooms by 2013.