(Source: Inside Retail Philippines | June 7, 2017)
Property developer and shopping mall company SM Prime Holdings has become the first Philippine company to reach P1 trillion (US$20.1 billion) in market capitalization.
“SM Prime acknowledges the investment community’s unwavering support. This is a great moment for us,” the Sy family-owned firm says.
The historic record was reached after the family integrated all its major property businesses under SM Prime in 2013.
“The strategic move enabled SM Prime to realize synergies among its business units, increasing efficiencies and revenue,” says the frim. “It also allowed SM Prime to pursue larger projects, from reclaiming land to long-term integrated developments.”
Ayala Land comes in second with a market capitalization of P608.14 billion, while Megaworld, the property-development arm of Andrew Tan, is a far third with P146.36 billion in market capitalization.
SM Prime earlier said it plans to spend at least P100 billion over the next two years to support its developmental goals. It is allocating 80 percent of its capital expenditure on project developments, mostly for mall and residential development. The rest is used for land banking.
This year SM Prime is scheduled to open five malls in the Philippines, all outside Metro Manila, taking its total to 65 malls in the Philippines and seven in China.
In the Philippines, 43 percent of its malls are in Metro Manila, 35 percent in Luzon, 14 percent in the Visayas and 8 percent in Mindanao.