SM Prime plans up to 6 upscale developments in next 5 years

LISTED real estate developer SM Prime Holdings, Inc. plans to launch up to six projects under its upcoming premium residential line within the next five years.

“The pipeline is maybe five to six projects in the next five years,” SM Prime Holdings Executive Vice-President and Premium Residential Line Head Jose Juan Z. Jugo said in an interview with BusinessWorld.

Mr. Jugo identified Cebu and Luzon as potential locations for the projects.

“We have a lot of land in other cities. We have a lot of land in Cebu, so that might be an area we want to enter later on. Luzon is a definite target,” he said.

Mr. Jugo said the first upscale residential project, expected to launch in the third quarter, will be located within the National Capital Region (NCR).

“We just want to get this project off the ground first,” he said.

“It’s all in process. If things go as planned, we may launch something in the third quarter. We’re already in the planning stage and securing permits,” he added.

In November last year, SM Prime said it would expand its residential portfolio to include high-end horizontal and vertical principal homes, in addition to its existing economic, mid-range, and leisure residential offerings.

SM Prime, the real estate arm of the Sy-led conglomerate SM Investments Corp., has allocated P100 billion in capital expenditures for its malls, residential developments, and integrated property projects this year.

For 2024, SM Prime recorded a 14% increase in its consolidated net income to P45.6 billion, as revenue rose by 10% to P140.4 billion.

SM Prime’s portfolio includes 87 local malls, 22 office towers, and over 185,000 residential units launched.

SM Prime shares were last traded on April 8, gaining 0.45% or ten centavos to close at P22.50 per share. — Revin Mikhael D. Ochave