SM Prime to spend P26B for 15 new malls over next five years

Mall giant SM Prime Holdings Inc. will set aside about P26 billion for the construction of 15 new malls within the next five years, a top company official said yesterday.

SM Prime president Hans Sy said that of the total programmed capital budget, P5.5 billion will be spent this year for the development of four new malls which include the Mall of Asia, touted to become the country’s premier shopping destination and tourist attraction.

Aside from the Mall of Asia, other malls under construction are SM City San Lazaro in Manila, SM Supercenter in Molino, Cavite and SM Supercenter Valenzuela.

Sy said the Mall of Asia is the company’s most extensive and potentially most lucrative project, which is slated for opening by December this year.

"It is now 75 percent complete. Everything is going in full blast for the SM Mall of Asia. We’re doing the exterior work now," Sy said.

He said another four malls will be developed in 2006. These include SM City Sta. Rosa, SM City Clark, SM City Lipa, and SM Supercenter Vito Cruz.

Meanwhile, the company’s board approved yesterday a P0.23 cash dividend to all shareholders of record of May 25. The cash dividends, amounting to a total of P2.3 billion, are payable on June 20.

The board likewise approved a regular cash dividend policy, setting the minimum dividend rate at 15 percent, payable on an annual basis.

Sy said SM Prime is eyeing a 10 to 11 percent growth in its net income this year. Net income is projected to grow to between P5 billion to P5.1 billion.

Last year, SM Prime reported a net profit of P4.26 billion on gross revenues of P10.21 billion.

Bulk of revenues came from rental revenues which increased by 17 percent to P8.18 billion compared with P6.98 billion a year earlier.