By BNN
SM Prime Holdings Inc. (SMPH), a leading property developer in the Philippines, has unveiled ambitious plans to further expand its retail footprint by launching four new shopping malls in 2024, adding a significant 440,000 square meters (sq. m.) of gross floor area (GFA) to its portfolio. This strategic move underscores SMPH’s confidence in the robust growth potential of the Philippine retail sector, particularly in emerging markets outside of Metro Manila.
Strategic Expansion and Economic Impact
In a bold step to diversify its geographical presence, SMPH plans to open SM City Caloocan in the first half of the year, boasting 94,000 sq. m. of GFA. The expansion continues in the second half with the launch of SM City J Mall in Mandaue City, Cebu (123,000 sq. m.), SM City San Fernando La Union (111,000 sq. m.), and SM City Laoag (123,000 sq. m.). This move not only expands SMPH’s mall operations to 89 locations nationwide but also plays a significant role in stimulating economic growth in the provinces, providing thousands of jobs, and boosting local businesses by driving consumer traffic and increasing market visibility.
Driving Growth Beyond Metro Manila
SMPH’s strategy to focus on provincial expansion is a testament to the company’s foresight in tapping into the high growth potential of the Philippine regions. With Metro Manila malls currently accounting for 41 percent of GFA, followed by Luzon (excluding Metro Manila) at 30 percent, Visayas at 12 percent, and Mindanao at 8 percent, the shift towards the provinces is poised to balance the geographic distribution of SMPH’s assets. This strategic direction is supported by SMPH’s substantial land bank of almost 360 hectares, which is expected to fuel the company’s growth for the next five to seven years.
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