Oppenheimer Funds buys into SM Prime

Oppenheimer Funds, an international investment adviser based in the United States, has acquired a 5.18-percent stake in shopping mall giant SM Prime Holdings Inc., a report filed with the Securities and Exchange Commission.

Oppenheimer, which provides investment advice to various mutual funds, said it now holds around 514.5 million common shares of SM Prime on behalf of its various clients.

According to Oppenheimer, the computation was based on the understanding that SM Prime has 9.93 billion common shares outstanding.

But Oppenheimer said neither the company nor its clients intend to exercise control over SM Prime.

SM Prime plans to open eight shopping malls this year and in 2006, including its biggest mall to date, the SM Mall of Asia, with a total floor area of 454,000 square meters in the Manila Bay area.

The Mall of Asia, set to be opened this December, is set to be the centerpiece of a 60-hectare central business park that the SM group plans to develop in the Manila Bay area.

This year, SM Prime will spend P5.5 billion to P6 billion to fund the construction of new malls and further beef up its landholdings from the current 187 hectares all over the country.

Aside from SM Mall of Asia, other malls set to open this year include SM Supercenter Molino, SM City San Lazaro and Supercenter Valenzuela.

SM Prime is eyeing a 10-to 11-percent growth in its net income this year to P5.1 billion. – Zinnia dela Peña