Sy-led mall chain to expand Visayas operations

CEBU, Philippines - The Sy-led SM Group is planning to build a mall in Ormoc City, Leyte soon as part of the expansion of its mall business in the Visayas.

SM Prime Holdings vice president Marissa Fernan confirmed that the company has already acquired a land in the city for the project which will be added to its mall count currently at 50 across the Philippines. It also has five malls in China.

“We’ve purchased a land and that’s a strong first step [already],” Fernan told The FREEMAN in Ormoc City where the firm broke ground on Wednesday its fourth housing project for typhoon Yolanda survivors in Visayas.

She, however, said she does not know yet the timetable for the project but she hinted: “We will build the mall maybe in about two to three years.”

Last year, SM Prime, operator of the conglomerate’s chain of malls, acquired a land area owned by the Aznar clan. The lot is reportedly to have a size of 1.7 hectares.

The city government of Ormoc said the planned new mall investment will provide job opportunities for the local residents.

Fernan also said the firm is also building a mall in Puerto Princesa, Palawan; it also has a property in Tacloban City where a mall will also be built, she added.

Meanwhile, SM Seaside City Cebu is set to open late this year.

In 2014, SM Prime’s net income grew by 13% on the back of its new malls and condo sales, posting double-digit growth in revenues.

Its consolidated net income last year reached P18.4 billion while its revenues increased 11% to P66.2 billion. Rental revenues from retail and commercial spaces grew 13% to P36.5 billion in 2014 from P32.2 billion in 2013. — Carlo S. Lorenciana (FREEMAN)