SM Prime hikes SRP project cost to P8.5B

CEBU, Philippines - SM Prime Holdings has announced an adjustment to its destination mall project at the South Road Properties (SRP), into making it as big as the Mall of Asia, bringing the project cost to P8.5 billion, from P6 billion.

In an interview with SM Prime Holdings president Hans Sy, he said that while the company is building not only a shopping mall facility, but a “destination mall”, that every Cebuano should be proud of, the company’s management decided to make it Cebu’s newest landmark, making it the fourth biggest mall in the world.

The decision he said is prompted by the vibrant retail and tourism industries in Cebu, and that the schedule for completion of the SRP SM that will be the flagship project of the “SM Seaside Complex” is on track, that will be officially opened by 2014.

“We have to build it right. It will be an attraction,” said Sy adding that the mall will be built on a four-story building, with a total space area of 409,000 square-meters similar to the size of the Mall of Asia in Manila.

Sy, together with other SM Group officials, was in Cebu Thursday, to formally open its second shopping mall in Cebu, the SM Consolacion.

The “SM Seaside City Cebu” mall will be one of the first developments in the master-plan of SM Properties, which stretches from the northern part of the SRP to the sea.

Designed by Arquitectonica, an international architecture, interior design and planning firm from Miami Florida, the grand, first-of-its-kind urban development at the SRP will dramatically change the landscape of the City with its nautilus-inspired design of expanding, concentric arcs from a central multi-purpose space.

The 3rd SM shopping mall in Cebu, next to the newly opened SM Consolacion, the SM Seaside City Cebu will be a 4-level, circular-shaped, world-class retail mall with multiple anchors, including a two-story SM Department Store and SM Hypermart, a five-theater Cineplex and IMAX Theatre, an 18-lane SM Bowling and Amusement Center, and a food court flanking an ice skating rink.

In addition, the mall will have over 800 food and retail shops, including international brands.

 Retail shops will occupy the outer arc of the mall on the ground floor. This area will include a furniture zone as well as a fashion boulevard to showcase the talent of Cebu’s many local designers.

The introduction of the SM Seaside City Cebu promises to revolutionize the malling experience not only in Cebu but in the whole country’s south.

An 150 meters Iconic Viewing Tower will be an attraction in itself, offering sensational panoramic views of the entire city of Cebu while serving as a new landmark for the City.

The company is allocating a capital expenditure (capex) of P60 billion in the next three years in the Philippines for its shopping centers construction projects. Aside from its aggressive expansion move in Cebu, the company is also spending to open up new shopping malls in other provinces.

Sy announced that following the opening of SM Consolacion, the company is set to open three more mall facilities, located in San Fernando, Pampanga; General Santos City, and its second mall in Davao City.

Moreover, he said the company is also working on expanding some of its existing malls in the Philippines, particularly SM North Edsa, among others.

Sy expressed strong confidence of the country’s retail sector, saying the country’s economy offers promising future, despite the external issues.

Meanwhile, Sy believes that while he is known as “catalyst”, he agreed to the fact, that once SM projects will finally rise at the SRP, the value of the entire property is seen to significantly increase.