Henry Sy’s SM Group allots P85B for 2016 capex
SM Investments Corp. (SMIC), the holding firm of retail and banking magnate Bilyonaryo Henry Sy, is spending between P80 and P85 billion for its capital expenditures this year.
SMIC chief financial officer Jose Sio said about two-thirds of the capital expenditure budget would be finance through internally generated cash flow while the remaining one-third would be sourced from loans.
Sio, however, said the company has no immediate plans to raise or borrow additional funds to finance the company’s expansion plans.
“We are very liquid, we have a strong balance sheet. There is no funding requirement for SMIC,” he added
For its mall operations, SMIC through SM Prime Holdings Inc. is opening five new malls and plans to expand SM City Calamba and SM City Naga this year.
By end 2016, SM Prime will have 67 malls including six in China with an estimated 8.6 million square meters of gross floor area.
SM Prime also plans to launch about 11,000 to 14,000 residential units in the cities of Quezon, Bicutan, Suat, Las Pinas, and Pasay.
It intends to launch new mixed-use development in Bulacan, Pampanga, and Cavite.
For the retail group, SMIC will be opening three department stores, two supermarkets, 18 Savemore branches, and 12 hypermarkets.
SMIC also expects the completion of the Three E-Com Center and E-Com Center in the Mall of Asia complex in 2017 and 2019, respectively.
The flagship company of the Sy family is also scheduled to open the luxurious 347-room Conrad Manila Hotel in June through SM Hotels and Conventions Corp. and operator Hilton Worldwide.