SM cues launch of 3 new malls in ’25
Shopping mall giant SM Supermalls is set to open three new local branches next year while redeveloping at least 10 others across the country as the group ramps up expansion and adapts to changing consumer behavior.
SM Supermalls president Steven Tan told reporters on Wednesday night that the malls would be built in Laoag City, La Union and Zamboanga City.
According to Tan, the gross floor area (GFA) of the new mall in Zamboanga will be bigger than the existing SM Mindoro, which was launched in 2020 and has a GFA of around 38,000 square meters.
“We will build [the new Zamboanga mall] from the ground … It’s quite big,” Tan said during the SM Group’s media event.
The company was originally set to open the Laoag branch this year but the launch was pushed back. Two malls were opened this year—SM City Caloocan and SM City J Mall in Mandaue City, Cebu.
SM Prime Holdings Inc. president Jeffrey Lim previously said Mandaue will be their last launch for 2024.
This comes as part of SM Prime’s goal of opening 100 SM malls by 2027 from 87 currently. SM Prime plans to spend up to P110 billion next year to bankroll the expansion of its mall chain, one of the company’s key revenue drivers.
At the same time, Tan said they would renovate over 10 malls next year, with some already underway.
The president said renovations at Mall of Asia in Pasay City were already “at the tail end,” and that they would soon launch a football field at the mandated size of the International Federation of Association Football—105 meters by 68 meters.
SM Megamall in Mandaluyong City, meanwhile, is also getting a makeover to include a rooftop garden.
Among the other malls up for renovation are SM Clark in Pampanga and SM Aura in Taguig City.
Earlier, Lim said they spend around P800 million to P1.5 billion to redevelop their malls, depending on the size.
In the first nine months of this year, the real estate giant’s net income reached P33.9 billion, jumping up by 12 percent on growth in SM Supermalls.
Revenues during the period also expanded by 8 percent to P99.8 billion.
The mall business’ revenues also rose up by 8 percent to P56.5 billion, accounting for 57 percent of the company’s total.
This puts SM Prime P6.1 billion away from shattering its record P40-billion full-year net income that was reported in 2023.
In 2025, the company is set to venture into both the low-cost and high-end residential markets amid a challenging environment for mid-income properties.
By then, SM Prime will consolidate all its residential projects under the SM Residences brand to cover economic, medium-cost, premium and leisure developments.
