SM Prime earmarks P1b for new Cebu property

07/19/2010 - SM Prime Holdings Inc., the country’s largest shopping mall developer and operator, is investing another P1 billion in Cebu after acquiring another five-hectare property in the island.

SM Prime president Hans Sy told reporters over the weekend that the company planned to develop the new property into another mall.

SM Prime earlier committed to invest P5 billion to develop a recently-acquired 28-hectare lot within the South Road Properties in Cebu City.

“We are very bullish on Cebu. We plan to invest P5 billion in the SRP over the next three years and another P1 billion for a five-hectare property,” Sy said.

Sy did not say the location of the new lot acquisition.

SM Prime at the start of the year acquired a 28-hectare lot on the reclaimed South Road Properties. Plans for the property include the construction of a shopping mall that could be as big as the SM Mall of Asia l along the reclaimed area in Roxas Boulevard in Pasay City and a conference hub similar to SMX Convention Center also in Pasay City.

Sy reiterated the company’s plans to raise as much as $500 million through the Real Estate Investment Trust law.

“We are ready to file our Reit application once the rules are finalized,” Sy said.

The Reit law allows real estate companies to list their income-producing property assets, such as mall or even highways, on the stock exchange.

SM Prime this year plans to open SM City Novaliches in Quezon City; SM City Tarlac; SM Supercenter Masinag in Antipolo City, Rizal; and SM City Calamba and SM Supercenter San Pablo in Laguna province. (Manila Standard Today)

SM Prime is also scheduled to open SM Suzhou in the fourth quarter in the province of Jiangsu, China. SM Suzhou will have a gross floor area of approximately 70,000 square meters.

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