SM to unveil Pasay 360 master plan

MANILA, Philippines —  SM Prime Holdings Inc., the listed integrated property developer of the Sy family’s SM Group, is set to unveil this year the  master plan for its ongoing reclamation project in Pasay.

The reclamation project, called Pasay 360, is regarded as SM Prime’s most transformative integrated property development, intended to be developed into an urban estate that fuses connectivity, sustainability, livability, tourism and commerce.

“Rest assured that we are working toward a formal unveiling of this master plan during this second half of 2025,” SM Prime chief finance officer John Nai Peng Ong said.

“This would basically be a mixed-use proposition. It’s a mixed-use of commercial retail. There would be a residential component. I think the key point really here is to look at the retail component and the experiential factor that we can put into place and that would bring forth the beauty of this reclamation or coastal development project,” he said.

The reclamation project is a 360-hectare development that SM Prime is undertaking with the local government of  Pasay.

SM Prime officially received notice from the city of Pasay to proceed with the project in 2019.

As the city’s joint venture partner, the company will develop raw land reclamation and horizontal development works.

Ong said the coastal land expansion is currently 76 percent complete.

“We do expect and we are working toward completing this portion, the sand placement and dredging phase, by the end of this year,” he said.

SM Prime has allocated P25 billion this year for the ongoing reclamation project, of which P20 billion has been spent to date.

SM Prime chairman Henry Sy Jr. earlier said that the reclamation project would showcase the company’s expertise and experience in building integrated property developments, noting that it would include hospitals, schools, universities, a museum and convention center.

Meanwhile, Ong said that SM Prime’s planned real estate investment trust (REIT) offering is still on the table, but it is unlikely to happen even next year.

“The plan in terms of having a REIT is still there. But we have to be upfront to say that in terms of timing, we have to defer the planned REIT. Instead of coming up with a REIT in 2026, we may have to defer it a bit. We have to take into account market conditions as well as liquidity in the market,” Ong said.

“So while the view on REIT is still there, but the timing may have to be deferred beyond the year 2025 and I think, personally, even beyond 2026,” he said.

SM Prime decided to postpone the firm’s REIT initial public offering last year given the interest rate environment and market volatility.

The company previously said that it would revisit its planned $1 billion REIT listing this year, but noted that pushing through with the offering would also depend on the company’s need to raise funds.