SM Prime eyes 2 mini-malls

Mall giant SM Prime Holdings Inc. is planning to build two mini-malls within Metro Manila as it aims to capture a significant slice of the hypermarkets concept and achieve economies of scale in its operations.

SM Prime senior vice-president Jose T. Sio said plans are underway for the establishment of a mini-mall in Antipolo and Marikina as part of efforts to increase market share and further improve cashflows.

Retail business had grown intensely competitive especially with the emergence of mini-malls or hypermarkets that have been aggressive on both their expansion and marketing activities.

Not to be left behind, Sio said SM Prime is also coming out with its own concept designed to offer complete services to residents of Marikina and Antipolo.

Mini-malls offer food, general merchandise and specialty shops and services like banks, shoe repair shops, and fast food restaurants.

"Marikina and Antipolo are good sites because they meet the geographic criteria of high population density," Sio said.

Sio, however, did not say how much the group is alloting for the establishment of mini-malls.

SM Prime is expected to perform better this year with the opening of four new malls – SM Mall of Asia, SM City San Lazaro, SM City Molino, Cavite and SM Sta.Rosa.

This year, SM Prime has earmarked P5 billion for the construction of new malls and acquisition of real estate properties for future expansion. For next year, five new malls are expected to open including SM Clark.

SM Mall of Asia is envisioned to be the country’s premier shopping destination and tourist attraction and the biggest shopping mall in the country. The first phase involves the development of main mall, an entertainment complex and two parking buildings with gross floor area of 300,000 square meters. It is expected to be completed in the fourth quarter of 2005.

The plan also includes the construction of a hotel, leisure and entertainment facilities, a school, a medical center, a church and residential and office condominiums.

The same site currently houses the SM Group’s corporate headquarters.

With an amassed landbank of 179 hectares in 18 prime locations, SM Prime is set for continuous expansion within the next five years.

The SM Group is also building two new malls in the cities of Chengdu and North Xiamen in China and are slated to open within the year. SM already has two malls that are already operational in Xiamen.

The SM group, in partnership with Hong Kong-based companies, is looking forward to expand its chain of malls in other countries, particularly developing nations like India.

Sio said the group is confident that it is well on track in meeting its earlier projection of a 10-percent to 14-percent increase in net profit for the full year of 2004.

Meanwhile, SM group’s real-estate arm SM Development Corp. is planning to develop its 6,000-hectare Haciena Looc property in Batangas. The site has 13 beach coves, where a mall, a high-rise condominium, golf course and a clubhouse will soon rise.

SM Prime is part of the SM Group of Companies, one of the largest conglomerates in the Philippines with interests in commercial property development, shopping mall operations, retail/wholesale and merchandising, banking and financial services, and leisure/tourism and real estate development.