Thursday, July 17, 2014
At a recent Fund Managers Association of the Philippines forum, which was held at the SMX Convention Center, Taguig, SM Investment Corporation (SM) highlighted opportunities in local real estate since its merger with SM Prime Holdings (SM Prime).
SM Prime has become one of Southeast Asia's largest property companies since the merger in 2013, with shopping malls, residences, convention centers, hotels and leisure facilities under its belt.
SM Vice Chairperson, Teresita Sy-Coson, says the SM Group has been particularly active with developments across all its core businesses in banking, retail and property, which is indicative of the Philippine economy’s growth story.
She says the reason why they merged the residences, malls, hotel, commercial, leisure and other such properties under SM Prime was to create a property company that is strong and well-positioned for the future.
SM Prime Vice President for Finance, Teresa Reyes-Agsalud, says because of the merger, SM Prime is in a position to pursue its next phase of growth. SM Prime now has access to a significantly larger land bank of over 900 hectares and real estate assets of US$13.8 billion as of the end of December 2013.
She says the bigger scale and enhanced capabilities will allow SM Prime to unlock revenue synergies within the group as well as pursue larger and more attractive opportunities in the market. She says it was part of the strategy to develop lifestyle cities such as the 60 hectare Mall of Asia Complex in Pasay City. Future lifestyle cities are being targeted in SM Clark in Pampanga, SM North in Metro Manila, SM Seaside City in Cebu and SM Lanang Premier in Davao.
SM SVP for Investor Relations, Corazon Guidote, says SM sees opportunity for growth in offices and hotels. She says SM plans to put up five e-com buildings and more park inns.
By holding on long term and trying to optimize synergies within the group, Guidote says that’s how they’ll create value for shareholders.