SM Warehouses scales up logistics footprint

MANILA, Philippines — SM Warehouses, a unit of integrated property developer SM Prime Holdings Inc., is expanding its footprint as logistics and warehouse demand in the country rises.

Alexis Ortiga, business unit head of SM Prime’s commercial properties group, said the company’s logistics portfolio is currently geared toward maximizing SM Prime’s land bank.

“We want to maximize SM Prime’s land bank now, and that really is nationwide. So, if there are opportunities as far down as Cebu, we will definitely take a look at it,” Ortiga said.

“Right now, we’re really looking at third-party logistics providers, e-commerce platforms and even regional warehousing as our tenant partners,” he said.

Ortiga said that while SM Warehouses currently has no plans to establish industrial parks, it can develop build-to-suit facilities to accommodate manufacturing operations.

SM Warehouses provides large-scale logistics and distribution spaces across the country.

It offers ready-to-move-in buildings, greenfield spaces and custom build-to-suit facilities, ranging from 5,000 square meters to over 120,000 square meters.

“We actually see logistics and warehouse demand increasing. A big part of this is due to the new generation of consumers that want their product now. This requires distribution centers and last-mile hubs that are closer to cities where most of the orders come from,” Ortiga said.

According to Ortiga, these last-mile hubs complement larger regional warehousing facilities that store more inventory but are farther from the city itself.

“Given the current young demographics of the Philippines – Gen Zs, millennials – we see e-commerce continuing to grow because of these types of consumers, which in turn will support demand for industrial and logistic space,” he said.

SM Warehouses has recently expanded its logistics space for Shopee partners SPX Express (SPX) and Scommerce Philippines Inc. with the turnover of a new 40,000-square-meter facility in Pasig.

A leading logistics and delivery services provider to businesses across Southeast Asia, Taiwan and Brazil, SPX previously signed a multi-year lease for approximately 86,000 square meters at the 130,000-square-meter Silangan Warehouse complex of SM Prime in Laguna.