SM Prime ventures into residential development

MANILA, Philippines -  SM Prime Holdings Inc., the listed property company of the Sy family, is launching its first subdivision in Mabalacat, Pampanga next month, with the initial phase targeted for the lower income segment.
In a briefing following the company’s annual stockholders meeting yesterday, SM Prime president Jeffrey Lim said they decided to go into this segment because of the strong demand.
The first subdivision, called Cheerful Residences, will rise on a 30-hectare property with the first phase covering 1,100 house and lot units valued at about P1.4 billion. Unit prices will range from P1.8 million to P2.5 million.


Depending on the demand, the company may expand the project by another 30 hectares to bring total housing units to as many as 5,000.
At the same time, SM Prime announced it was spending at least P50 billion per year over the next two years to support its developmental goals. Of the total, 80 percent will go to project developments, mostly for mall and residential development. The remainder will be used for land banking.
“SM Prime will continue to expand its mall and residential businesses which are the major revenue drivers. We will further reach out to provincial cities as an integrated property developer and as a strategic partner, given the tremendous opportunities in light of higher government spending on infrastructure development across the country,” Lim said.
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For the malls, SM Prime is scheduled to open five, all outside Metro Manila.  These include SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas.
By the end of 2017, SM Prime will have 65 malls in the Philippines and seven malls in China with an estimated combined gross floor area of 9.2 million square meters.
In the Philippines, 43 percent of the company’s malls are located in Metro Manila, 35 percent in Luzon outside Metro Manila, 14 percent in Visayas and eight percent in Mindanao.

retrieved from
http://www.philstar.com/business/2017/04/26/1693848/sm-prime-ventures-residential-development