SM Seaside City Cebu is expected to fully operate by October 2015 and not September as earlier projected by SM Prime Holdings, Inc.
This was announced by the company during the blessing and launching of the 21 meter by 21 meter “The Cube” last Tuesday, which signals the start of more features to come at the mixed-use complex currently being constructed at the South Road Properties.
The economic stability of Cebu has driven SM Prime Holdings, Inc. to further expand its mall operations in the city, a top company official said.
Jeffrey Lim, SM Prime chief financial officer, noted Cebu remains to be a big and key expansion area of the Sy-led property company because of its viability for business and commerce.
"This demonstrates the company's continued confidence in the city with its dynamic population and prosperous business environment," Lim said.
In an interview, Marissa Fernan, SMPH vice president for Visayas and Mindanao, said the company has invested billions for the development of the 30-hectare property.
However, she refused to disclose figures, saying the budget allocation for the completion of the whole complex has been changing because of the current improvements which are being done and, thus, are adding to the cost.
SM Prime is spending P400 billion in capital expenditures as part of its five-year plan to double revenues and income of the consolidated property holding firm of the Sy family. It is spending P60.9 billion this year.
Its revenues in the first half of this year increased by 12 percent year-on-year to P9.8 billion driven by the rental revenue growth due to its expanding mall operations.
Operations
Fernan also disclosed the mall will house at least 887 food and retail stores both of local and international brands for long-term agreement. In terms of initial operations, she added, non-food businesses will have an initial two years while food brands will have three years.
She said many potential tenants have already expressed interest in locating their business in the mall. Aside from the mall, the complex will also have high-rise office buildings, residential towers, a hotel, convention center and events center.