Filipino billionaire Sy family’s SM Prime to spend $9B on 5-year expansion plan
SM Prime, which is part of the Philippine conglomerate owned by the billionaire Sy family, intends to invest 500 billion pesos ($9 billion US) in the coming five years for national expansion.
The chairperson of the company, Henry Sy Jr., described the initiative as their most daring expansion and diversification effort since they opened their inaugural shopping center in 1985, aiming to leverage growing consumer prosperity.
He stated that we must keep expanding and investing as the opportunities continue to increase. Forbes At the fringes of SM Investments' recent shareholders assembly, it was noted that "An increasing number of individuals aspire to reside, purchase goods, and operate businesses in enhanced environments."
In line with its strategic plan, SM Prime intends to launch between 10 and 15 new shopping complexes, as many as five extensive mixed-use real estate ventures, eight hotels, two conference halls, around a dozen business and living spaces, along with four high-end housing initiatives.
The company president, Jeffrey Lim, stated that the majority of the funds will be sourced from internal cash flow.
The drive for expansion continues as rivals such as Ayala Land and Robinsons Land intensify their development of retail spaces and properties.
Currently, SM Prime holds the position as the largest mall operator in the Philippines, overseeing 87 shopping malls nationwide, which encompass a combined gross floor space of 9.4 million square meters. In addition to this, their holdings feature 10 hotels providing over 2,600 guestrooms, along with eight convention centers and more than 22 office structures.
In the first quarter, it posted a net income of 11.9 billion pesos, an 11% increase from 10.7 billion pesos in the same period last year, according to its press release issued last week.
Its revenue for the period rose 7% year-on-year to 32.8 billion pesos, driven by stronger rental collections, real estate sales, and other income streams. Malls remained the primary driver of profitability, accounting for 69% of the firm’s earnings.
While the new U.S. tariffs pose potential external risks, SM Prime expressed confidence that the Philippines’ largely domestic-oriented economy and limited direct exposure will help buffer adverse effects. Robust consumer spending and favorable macroeconomic trends are also expected to aid its continued growth.
Lim stated that they have a strong base and are confident about their ability to create lasting, sustainable value for their shareholders.
The company's parent entity, SM Investments, stands as one of the biggest conglomerates in the Philippines. It was established in 1958 as a footwear outlet by the late magnate Henry Sy Sr. Following his death in 2019, his six offspring took over his vast business conglomerate. Currently, the Sy clan is considered one of the most affluent families in the Philippines, boasting a collective wealth totaling $13 billion U.S. dollars.
