SM Prime Plans $9 Billion Expansion Across Philippines

SM Prime Holdings, the Philippines’ largest mall operator, has announced a bold five-year expansion and diversification plan valued at approximately $9 billion (500 billion pesos), aiming to leverage the country’s rising consumer wealth. The strategy includes opening 10-15 new shopping malls, up to five integrated property developments, eight hotels, two convention centers, a dozen office and residential towers, and four luxury residential projects, with a significant focus on expanding into underserved regions and upscale residential markets. Most of the funding will be sourced from internal cash flows, reflecting the company’s confidence in sustainable growth amid increasing competition from rivals like Ayala Land and Robinsons Land. The roadmap also features redeveloping existing mall spaces and launching new premium brands in Metro Manila, with plans for broader rollout based on demand. In the first quarter, SM Prime reported an 11% year-on-year net income increase to 11.9 billion pesos, with malls contributing 69% of earnings. While external risks like new U.S. tariffs exist, the company remains optimistic, citing the Philippines’ domestic-oriented economy as a buffer.