SM Prime to consolidate all residential projects

MANILA, Philippines — SM Prime Holdings Inc. is set to consolidate all residential projects under the SM Residences brand as part of a strategic reformat and expansion of its portfolio to optimize revenue mix across key business units.

Starting next year, SM Prime said all residential projects under the SM Residences brand covering a range of offerings from economic, medium-cost, premium and leisure developments would be consolidated under SM Residences.

The listed integrated property developer of the Sy family said the move is in line with its long-term plan to gain a stronger foothold in underserved markets and high-growth sectors, including premium and integrated development.

“Our growth over the past 30 years has been largely driven by our market-leading position in the mall and retail segment,” SM Prime president Jeffrey Lim said.

“As we move forward, our goal is to unlock the full potential of our extensive land bank through SM Residences and more integrated developments. This will enable us to sustain long-term growth across a broader business portfolio,” Lim said.

SM Prime has earmarked over 1,000 hectares of land for its SM Residences projects.

The projects are slated for development over the next five years, around 85 percent of which are for horizontal development.

The SM Residences premium line, for its part, is being eyed for launch early next year, starting with a 200-hectare development.

More projects of different formats with prices ranging from P25 million to over P100 million are likewise being planned and pipelined by SM Prime to address demand in the different sub-markets of the high-end segment.

Lim said that the price adjustments made by the National Economic and Development Authority and the Department of Human Settlements and Urban Development under joint memorandum circular No. 2024-001, meanwhile, would allow SM Prime to target a broader segment of the housing market. 

The government has raised the guaranty ceiling for low and medium-cost housing packages to P4.9 million and P6.6 million, respectively.

“It will also enable us to better address the growing demand for affordable and quality housing, while contributing to the government’s efforts to reduce the housing backlog,” Lim said.

By strategically aligning and expanding its portfolio, SM Prime hopes to sustain its growth momentum, diversify revenue streams and strengthen its leadership position in the real estate sector.

The company said that it remains committed to its role as a catalyst for economic growth by delivering innovative and sustainable lifestyle cities.

SM Prime is looking to spend P100 billion to P110 billion for its capital expenditures next year, with plans to open five new malls in the country.