PHILIPPINES: SM Investments Corporation honored with seven awards during the 12th Corporate Governance Asia Recognition Awards 2016

PHILIPPINES: SM Investments Corporation honored with seven awards during the 12th Corporate Governance Asia Recognition Awards 2016

 

Pasay City, Philippines, 2017-Mar-24 — /EPR Retail News/ — SM Investments Corporation (SM) and its subsidiaries received seven awards from Hong Kong-based publication Corporate Governance (CG) Asia during the 12th Corporate Governance Asia Recognition Awards 2016 organized by the magazine.

SM and its subsidiaries/ affiliates SM Prime Holdings, Inc. (SM Prime), BDO Unibank, Inc. (BDO) and China Banking Corporation (China Bank) were chosen as awardees from the Philippines.

CG Asia cited SM, SM Prime and BDO as “Icons on Corporate Governance” for the 11th, 6th and 12th year respectively. China Bank was named as Asia’s Outstanding Company on Corporate Governance for the second consecutive year.

The magazine also recognized SM President Harley T. Sy, BDO Chairperson Teresita T. Sy-Coson and China Bank Chairman Hans T. Sy with the “Asian Corporate Director Award”.

CG Asia seeks to recognize companies who have consistently made the honour rolls in its annual awards in the past 12 years by bestowing to them the highest accolade of Icons in Corporate Governance. This esteemed recognition belongs to the best of the best in corporate governance in Asia as they continue to uphold the best practices no matter what the business cycle is.

The Asian Corporate Director Recognition Awards acknowledge outstanding corporate directors from boards of public and private companies in Asia and have been leaders in guiding their boards and executive management in growing their companies and mantaining the ethics of their respective boards.

The multiple awards given were the following:
SMIC
Icon on Corporate Governance
Asian Corporate Director Award – Mr. Harley Sy

SM Prime
Icon on Corporate Governance

BDO
Icon on Corporate Governance
Asian Corporate Director Award – Ms. Teresita Sy-Coson

China Bank
Outstanding Company on Corporate Governance
Asian Corporate Director Award – Mr. Hans Sy
Corporate Governance Asia is now read by 14,000 of the most important companies in Asia and provides incisive editorial content with extensive coverage on the latest and current developments, legislation, case studies and various analyses relating to corporate governance practices in Asia.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

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Philippines: SM Prime Holdings reports core net income growth of 12% in the first quarter of 2016

Pasay City, Philippines, 2016-May-02 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a core net income growth of 12% in the first quarter of 2016 to PHP5.8 billion while consolidated revenues rose 10% to PHP18.2 billion.

“SM Prime’s massive expansion last year propelled our performance this quarter. Our strong balance sheet coupled with consistent recurring revenue and income should allow us to pursue our growth plans this year and in the medium term,” SM Prime President Hans T. Sy, said.

In the first quarter, mall revenues surged 11% to PHP11.0 billion from PHP9.9 billion in the previous year. Mall revenue alone accounted to 60% of SM Prime’s consolidated revenue, for which 85% of it comes from rental income. Growth was largely driven by new malls and expansion of existing malls in 2015. These are SM Seaside City Cebu, SM City Cabanatuan, SM City San Mateo, SM Center Sangandaan and SM City Iloilo with a total gross floor area (GFA) of 738,000 square meters (sqm). Excluding the new malls and expansions, same-store growth averaged 7%.

To date, SM Prime has a total of 57 Malls in the Philippines and six in China with total retail space of 8.4 million sqm. This includes the newly opened SM City San Jose del Monte in Bulacan, with a GFA of 101,000 sqm. The company is set to open four more malls this year namely, SM City Trece Martires, SM City East Ortigas, Cherry SM Congressional and Cherry SM Antipolo. SM Prime also intends to expand its existing malls namely SM City Calamba and SM City Naga.

SM Prime’s residential group, which contributed 32% of consolidated revenues, posted revenues of PHP5.8 billion in the period being reviewed, up 5%. The increase can be traced by the higher construction accomplishments of SM Development Corporation (SMDC) projects launched in 2013 to 2015. These are Grass Residences, Shore Residences and Air Residences in the cities of Quezon, Pasay and Makati. This was also supported by the increase in sales take-up in M Place Residences, Field Residences and Jazz Residences in the cities of Quezon, Parañaque, and Makati.

Consolidated costs of real estate inched up by 2% to PHP2.9 billion mainly due to higher revenues recognized in real estate sales. This generated a higher gross profit margin of 47% from 46% in the same period last year. Net income margin likewise rose to 24% from 23%.

SM Prime currently has twenty eight residential projects in the market in Metro Manila and Tagaytay. SM Prime has already launched two new projects and an expansion of existing development equivalent to 4,000 units in Las Pinas, Bicutan and along Roxas Boulevard. For the rest of the year, SM Prime is still set to launch an additional 10,000 to 12,000 units located in the Mall of Asia Complex, Tagaytay, Quezon City, Bulacan, Cavite and Cabanatuan.

The Commercial Properties Group, accounted for 5% of consolidated revenues, soared 16% to PHP 1 billion in revenues. The growth was complemented by the opening of SM Cyber West and Five E-Com Center, with a combined GFA of 171,000 sqm. These office buildings currently enjoy an average occupancy rate of 99%. The Commercial Properties Group presently has five office buildings with an estimated gross floor area of 318,000 sqm. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2017 and 2019, respectively.

The hotels and convention centers business grew by 22% in the first quarter of 2016 to PHP 617 million in terms of revenue. The growth was propelled by an improvement in the average room and occupancy rates which was supplemented by the opening of 154-room Park Inn Clark in Pampanga. SM Prime will unveil the 347-room Conrad Manila in second half 2016.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

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For further information, please contact:

Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

PHILIPPINES: SM Prime Holdings opens SM City San Jose Del Monte, Bulacan

Pasay City, Philippines, 2016-May-02 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the country’s largest integrated property company, is opening SM City San Jose Del Monte on April 29, 2016. This is SM Prime’s 57th mall in the Philippines and the third in the province of Bulacan – after SM City Baliwag and SM City Marilao.

This newest retail and dining destination will add 101,000 square meters (sqm) in gross floor area (GFA) to the floorplate, which will bring SM Prime’s total retail space to 7.4 million sqm, the largest footprint in the country.

“We continue to expand in the provincial areas as we remain optimistic about their huge potential for growth. The opening of SM City San Jose Del Monte in Bulacan is a testament to this strategic direction as we remain steadfast in developing premier destinations around the country,” SM Prime President Hans T. Sy said.

SM City San Jose Del Monte is strategically located along Quirino Highway in Bulacan, which is connected to the cities of Quezon and North Caloocan. San Jose Del Monte is a second-tier city with predominantly middle income households, of which, 62% have family members that are Overseas Filipino Workers (OFW). The city contributes to one of the fastest growing residential and commercial hubs in the Northern Gateway of Metro Manila, covering 59 barangays and a population of almost 500,000 based on the 2010 census.

SM City San Jose Del Monte opens with 70% of space lease-awarded occupying its three floors with retail stores, dining outlets, recreation and entertainment facilities, and service centers topped with commendable architectural design making it the newest vibrant urban hub in the north of Metro Manila. The prime spaces are allocated to local and international retail brands, well-loved food outlets and anchor tenants such as THE SM STORE, SM Supermarket, SM Appliance Center, Ace Hardware, BDO, Surplus, Watsons, and SM Cinema with four state-of-the-art cinemas giving a total of 1,026 cinema seats. A multilevel basement parking, with 912 parking slots, is also provided for mall-goers’ convenience.

By the end of 2016, SM Prime is targeting to have 61 malls in the Philippines and six in China with an estimated combined GFA of 8.6 million sqm.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

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For further information, please contact:

Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

 

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Architect’s Perspective of SM City San Jose Del Monte in Bulacan

Architect’s Perspective of SM City San Jose Del Monte in Bulacan

SM Prime Holdings to earmark PHP60 billion annually for the next three years to sustain its developmental goals

Pasay City, Philippines, 2016-Apr-13 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, will earmark at least PHP60 billion annually for the next three years to sustain its developmental goals.

“SM Prime’s expansion program for the malls remains focused on the provinces which present major opportunities for higher growth and where many areas remain unserved. In the housing sector, we will continue to serve the Metro Manila area but will slowly move towards the provincial areas in the medium term. The emergence of the Philippine economy will allow us to be of greater service to as many communities as we could possibly reach,” SM Prime President Hans T. Sy said.

The company is slated to open five new malls in the Philippines this year. These are SM City Trece Martires in Cavite, SM City San Jose Del Monte in Bulacan, SM Cherry Congressional, SM City East Ortigas and SM Cherry Antipolo. In addition to the new malls, the company will be expanding SM City Calamba and SM City Naga. By end 2016, SM Prime will have 61 malls in the Philippines and six malls in China with an estimated combined gross floor area (GFA) of 8.6 million sqm.

Over the past three decades, SM malls have become more than just a shopping experience for the Filipinos. These have become the destination malls that create a whole new experience. This year, SM Prime will also open the Galleon Museum in the MoA Complex, which will bring to life the country’s rich Manila – Acapulco, Mexico trade heritage.

In residential development, SM Prime, through SM Development Corporation (SMDC), will launch between 11,000 to 14,000 units in Quezon City, Bicutan and Sucat in Paranaque, Las Piñas and Pasay at the Mall of Asia (MoA) Complex. SM Prime also intends to gradually enter the economic housing market by launching new mixed-use developments in Cabanatuan, Pampanga and Cavite in the second half of this year.

The Commercial Properties Group of SM Prime will sustain the growth momentum and increasing demand for modern and innovative office buildings from the Business Process Outsourcing (BPO) companies. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2018 and 2019, respectively. When completed, these office buildings will add 236,000 sqm (GFA) and become the newest architectural landmarks in the MoA complex.

SM Prime’s hotel group will open the 347-room Conrad Manila in the second half which will  further enhance the value and foot traffic of Mall of Asia (MoA) Complex. Conrad Manila is the first 6-star hotel of the Hilton hotel brand in the country. This is the first certified U.S. Green Building Council’s LEED® in the MoA Complex. Conrad Manila is inspired by the world-class sunset of the Manila bay, envisioned as a floating vessel that cruises on a stylish urban resort atmosphere, perched atop an upscale lifestyle mall called S’Maison.

During its Annual Stockholders’ Meeting held today, SM Prime declared a cash dividend of twenty-three (P0.23) centavos per share amounting to P6.64 billion in favor of all stockholders of record as of April 29, 2016 and payable on May 12, 2016. This is equivalent to 35% of last year’s Philippine Net Income, excluding one-time gain on marketable securities. On the same event, SM Prime shareholders elected Executive Vice President Jeffrey Lim as the newest member of its Board of Directors.

SM Prime recognizes the value of good governance in the operation of its business, and continues to foster its culture of good corporate governance through the continued review and development of its policies and programs.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

For further information, please contact:

Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

SOURCE: SM Prime Holdings, Inc.

SM Investments Corporation turns over new building to the University of the Philippines Professional Schools at Bonifacio Global City in Taguig

Pasay City, Philippines, 2016-Mar-02 — /EPR Retail News/ — SM Investments Corporation (SM) has turned over a nine-level building to the University of the Philippines (UP) Professional Schools at Bonifacio Global City in Taguig.

The new satellite campus spans a total floor area of 12,000 square meters  and houses 29 classrooms; three computer laboratories; a study area called a learning commons; faculty lounges; an auditorium; a moot court or a venue for simulated court proceedings for law students; a multipurpose hall; discussion rooms; conference rooms; office spaces; and an executive lounge.

“It is with great pride that we turn over today the Henry Sy Sr. Hall to the highly esteemed University of the Philippines here at BGC.  The building carries no less than my father’s name whose prime advocacy is education. He worked hard and sacrificed so much early in his life just to be able to receive formal education. He wants the same for every Filipino,” SM Prime Holdings, Inc. President Hans T. Sy said.

Post-graduate classes will be held at the new campus. The UP College of Law will offer an evening Juris Doctor program . The Cesar E. Virata School of Business will offer MBA and DBA classes starting in 2017. Other UP Diliman units that will be offering post-graduate classes at UP BGC include the College of Engineering; School of Statistics; School of Urban and Regional Planning; School of Labor and Industrial Relations; and the College of Architecture.

In 2014, SM inked a memorandum of agreement with UP for the construction of a professional schools building.

UP is SM’s long-time partner school in its nationwide college scholarship program under SM Foundation, inc. Through this program, SM has and continues to provide free college education to thousands of deserving  young people coming from financially challenged families. This program is also rooted in empowering the youth, giving them hope and honing their true potential while investing both in their future and that of the whole country.

# # #

About SM Investments
SM Investments Corporation is the country’s largest publicly listed holding company with a sustainable group of businesses that thrives on leadership, innovation and the synergistic operations in banking, property and retail.

SM steadily evolved and progressed from its humble beginnings as a modest shoe store in 1958 to one of today’s largest and most well-known Philippine corporations. It was listed on the Philippine Stock Exchange in 2005, and owns blue-chip listed firms SM Prime Holdings, BDO Unibank and China Banking Corporation.

SOURCE: SM Investments Corporation

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Henry Sy Sr. Hall at the University of the Philippines Campus in Taguig City

Henry Sy Sr. Hall at the University of the Philippines Campus in Taguig City

Philippines: SM Prime Holdings reported recurring net income growth of 14% in 2015

Pasay City, Philippines, 2016-Feb-24 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a recurring net income growth of 14% in 2015 to PHP20.9 billion on the back of an 8% increase in consolidated revenues to PHP71.5 billion in the same period.  On a consolidated level, net income increased 54% to PHP28.3 billion, inclusive of the PHP7.4 billion one-time trading gains on marketable securities booked in the first quarter of the year.

“SM Prime sustained its overall net income growth in 2015 as the malls’ overall operations led the performance of the group. This is a reflection of the overall expansion of the economy that continues to be driven by the 6.2% growth in household consumption. We believe we could sustain this growth in 2016 as we continue to focus on enhancing the synergies across our core business units as an integrated property developer,” SM Prime President Hans T. Sy, said.
Rental revenues from malls and commercial spaces, which accounted for 57% of the consolidated revenues, surged at 12% to PHP40.7 billion from PHP36.5 billion in the previous year. The strong growth in rental revenue was sustained by SM Prime’s expansion across all its business portfolio since 2013. Growth can be traced to new malls such as SM Aura Premier, SM City BF Parañaque, Mega Fashion Hall in SM Megamall, SM City Cauayan in Isabela, SM Center Angono in Rizal, SM City San Mateo in Rizal, and the expansion of SM City Bacolod, all of which contributed an additional total gross floor area of 728,000 square meters. Rental growth was also complemented by the opening of office buildings SM Cyberwest in Quezon City, and FiveE-comCenter in Pasay City, both fully occupied. Combined, these office spaces added GFA of 171,000 sqm. Excluding the new malls and expansions, same-store rental growth continued to exhibit 7% increase.
SM Prime’s real estate sales, accounted for 31% of consolidated revenues, sustained its revenues at PHP22.2 billion in 2015. The flat performance of revenues was primarily due to lower revenue recognition from the almost completed housing projects that were launched in 2011 and 2012.  On the other hand, the recently launched projects continue to enjoy brisk sales, with SM Development Corp. (SMDC) posting higher reservation sales by 12% year-on-year to 14,390 units in 2015. As a result SMDC, which contributes 93% of the housing group’s real estate sales, achieved a 15% increment in sales value worth PHP39.8 billion from PHP34.6 billion last year. Reservation sales were largely generated from Shore 2 Residences, Shore Residences, Air Residences, Jazz Residences and Fame Residences and in the cities of Pasay, Makati, and Mandaluyong, respectively. For the period, housing group’s net income increased by 8% to PHP5.1 billion from PHP4.7 billion in 2014.
Consolidated costs on real estate dropped by 2% to PHP12.0 billion mainly due to the improving cost efficiencies, tighter monitoring and control of construction costs. This generated higher gross profit margin on real estate sales to 46% in 2015 from 44% in 2014. Net income margin likewise stood at 23% from 21% in the same period.
Cinema and event ticket sales, which represented 7% of consolidated revenues, recorded a 12% growth in 2015 to PHP4.8 billion. International movies continued to dominate Philippine Cinema. Other revenues, which consisted of amusement income from rides, bowling and ice skating operations, merchandise sales from snack-bars and sale of food and beverages in hotels stood at PHP3.8 billion, up by 14% from PHP3.3 billion. The growth exhibited was mainly driven by the opening of Sky Ranch Pampanga, improvement in hotels’ food and beverages income as well as an increase in sponsorship income.
To date, SM Prime has a total of 56 Malls in the Philippines with total retail space of 7.3 million square meters. This includes SM Seaside City Cebu, SM Center Sangandaan, SM Cherry Shaw, SM City Cabanatuan, SM City San Mateo and SM Megacenter Cabanatuan which opened November 27, October 23, October 13, October 9, May 15 and April 24, respectively. In China, SM Prime has six shopping malls with a GFA of 0.9 million sqm including the recently opened SM City Zibo. Taking into account both Philippine and China malls, SM Prime’s total retail space is at 8.3 million sqm.
SM Prime presently has 27 residential projects in the market, 25 of which are in Metro Manila and two in Tagaytay. For 2016, SM Development Corporation will launch between 11,000 to 14,000 units in Quezon City, Bicutan and Sucat in Paranaque, Las Piñas and Pasay at the Mall of Asia Complex. SM Prime is also set to launch new mixed-use developments in Bulacan, Pampanga and Cavite.
Currently, the Commercial Properties Group has five office buildings with an estimated gross floor area of 318,000 sqm. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2017 and 2019, respectively. For hotels and convention centers, the Conrad Hotel Manila is expected to open in the second half 2016. The 347-room hotel will further enhance the value of the properties within the whole Mall of Asia (MoA) Complex, given that this will be the first 6 star hotel in the Pasay City area.
SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.
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For further information, please contact:
Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

Philippines: SM Prime Holdings mall business announces recent ISO 22301 certification

Pasay City, Philippines, 2015-12-17 — /EPR Retail News/ — The mall business of SM Prime Holdings, Inc. (SM Prime), the country’s largest integrated property developer, reported its recent certification by the International Organization for Standardization. The ISO 22301 certification affirms the company’s commitment to meet the needs of its stakeholders especially in times of disasters and calamities.

ISO awarded the certificate to SM Prime for establishing and applying a Business Continuity Management program for its SM Supermalls. Likewise, the certification covers the Mall of Asia Arena Annex Building, the headquarters of SM Prime in Pasay as well as SM Megamall, one of SM Prime’s largest malls in the country.

“This certification assures our stakeholders that the company will be able to respond to, recover from and continue its business after a disruptive event. For our customers, this means assuring their safety first and foremost, even as we provide access to basic necessities even at the onset of the calamity,” SM Prime President Hans T. Sy said.

The ISO certification meant going through a series of detailed audits which included internal assessments to ensure readiness for certification and an external audit on the company’s Business Continuity Management System.

“SM Prime is committed to make sure that business continuity is part of our operations especially after a calamity to provide continuous livelihood, not only to our employees, but to the employees also of our tenants, suppliers and all our stakeholders,” Sy added.

The ISO is an independent, non-governmental international organization with a membership of 162 national standard bodies. It brings together experts to share knowledge and develop voluntary, concensus-based, market relevant international standards that support innovation and provide solutions to global challenges.

The ISO 22301 certification covers the requirements for a robust business continuity management system, which will allow the company to minimise the risk associated with disruptions and to make certain that control is maintained at all times. More information about ISO 22301 can be found in this link: http://www.isoqsltd.com/iso-certification/iso-22301-business-continuity-management-certification/.

In the last few decades, SM malls have integrated disaster risk reduction into their design and operations amid worsening effects of climate change. Aside from SM Megamall, good examples of these are SM City Cabanatuan in Nueva Ecija, SM City Marikina, SM City Masinag in Antipolo, Rizal, SM BF Paranaque, SM Angono and SM San Mateo in Rizal, SM Muntinlupa in Alabang, The SM Mall of Asia in Pasay and SM Seaside City in Cebu among others.

SOURCE: SM Investments Corporation
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Philippines: SM Prime Holdings mall business announces recent ISO 22301 certification

Shown in the photo are (from left) Richard O. Regalado, Consultant, EIAN Management Consulting; John C. Ong, Chief Finance Officer, SM Prime; Myquel M. Regalado, Adviser, EIAN Management Consulting; Royston A. Cabunag, Assistant Vice President for Operations, Mall of Asia Annex Building; Femelyn Lati, General Manager, TŪV SŪD PSB Philippines; Hans T. Sy, President, SM Prime; Christian V. Mathay, AVP for Operations, SM Megamall; Eunice M. Sotto, AVP for Enterprise Risk Management, SM Prime; Anna Maria S. Garcia, President, Shopping Center Management Corp.; and Egbert T. Lim, Mall Manager, SM Megamall.

Philippines: SM celebrates 30th anniversary of SM City North EDSA mall

Pasay City, Philippines, 2015-12-15 — /EPR Retail News/ — SM City North EDSA, one of the most iconic shopping malls in the country, has been an epitome of how SM malls have transformed to meet the shifting needs and demands of consumers in a dynamic Philippine retail environment.

From a footprint of only 125,000 square meters on opening in 1985, SM’s very first mall has grown in size to almost 498,000 square meters, housing more stores, concepts and ideas in keeping with today’s consumer trends and preferences.

Speaking before SM’s retail partners during the 30th anniversary of SM Supermalls last October, SM Prime Holdings President Hans T. Sy said that the retail landscape in the last thirty years “has become more global and competitive where technology has forever changed the way we live and do things.”

Opened in November 1985,  SM City North EDSA is SM Founder Henry Sy’s first shopping mall and now the largest in the Philippines.

“Ever the visionary, my father thought of building malls when he saw the shopping center development in the US during his business trips abroad in the 1950s and 1960s. That was the time when ‘burbs’ or suburbs were being built in the outskirts of big cities with a shopping mall as the center. He saw this development from the east to the west coast and knew this would happen in the Philippines,” Sy said.

SM North EDSA was completed by Henry Sy, Sr. amidst one of the most turbulent times in Philippine history.  Sy recounted that when his father started building SM City North EDSA in 1983, people thought it was a crazy idea as it happened during a political crisis where interest rates rocketed to as high as 45%. More so, the location of the mall was right smack in the middle of a marshland on North EDSA.

“They said that SM City would not succeed, but the mall was an instant success. And the rest they say is history,” Sy told retail partners.

Creating shared value

SM City North EDSA proved to be highly successful and transformative for its host communities.  With new business opportunities, the mall hastened economic activity and infrastructure development to and from Manila and nearby provinces as it was touted as an important regional destination.

Proof of its impact, the value of property in the area showed exceptional growth. Data from the Bureau of Internal Revenue show that from an initial zonal value of Php2,500 per square meter in 1990, land values around the mall soared to Php40,000 per square meter in 2000. It also opened employment opportunities, both direct and indirect, generating approximately over 6,000 jobs from SM, its agencies and tenants. Since its opening, it has consistently been one of the top tax payers in the Quezon City.

Business sustainability is also at the forefront of the mall’s operations throughout the years where its environmental programs can be summed up into three main areas:  (1) awareness (2) conservation and preservation and (3) disaster risk reduction.

For its awareness programs, SM Prime invites its tenants to learn more about environmental conservation and preservation by holding its annual Green Retail Agenda. SM City North EDSA shuts off its lights to participate in EARTH HOUR, the world largest celebration to raise awareness on environmental issues.

Through its energy conservation efforts, SM currently is the selected location for the 1.5 megawatts of solar energy through its 5,760 solar panels which offset 1,200 CO2 which is equivalent to planting 6,000 trees a year. The mall also uses LEDs for lighting.

Along with other SM malls, it also implements a water conservation program which recycles about 30% of total consumed water. The recycled water is used for the malls’ cooling towers, toilet flushing and grounds keeping.

It also participates in the Tenant Solid Waste Management Program which requires all tenants to segregate their waste. Through the “Trash to Cash” program, the mall invites its customers to bring their trash to the mall and exchange it to cash.

During times of calamity, SM City North EDSA partners with SM Foundation in distributing relief packs and opening its doors to serve as a safe refuge for affected families in the area.

The mall’s high visibility and foot traffic was also instrumental in the success of its tenants who have, in turn, been loyal partners of SM as it continues to expand in the country.

“Some of you helped us make malling a phenomenon when we built SM Megamall in 1991. Many of you grew with us as we experienced malling milestones: our foray into the provincial areas when we opened SM City Cebu which was followed by an aggressive expansion program to key cities around the Philippines. You were with us when we sought to make the SM Mall of Asia the premier destination mall in the region and when we ventured into more upscale projects like SM Aura Premier and the Mega Fashion Hall,” Sy told retail partners.

A dynamic mall

From its original shoe-box design, SM City North EDSA evolved to become the country’s largest mall that draws an average foot traffic of 420,000 shoppers a day.

Through the years, the mall has gone through several redevelopments which began with the Car Park Plaza in 1988, the SM Annex in 1989, the Block in 2006, The Annex and Interior Zone in 2008, the Sky Garden in 2009 and The Northlink in 2010.

Complementing these developments, SM built new spaces for various concepts such as for business process outsourcing (BPO) companies and other private offices. One is The North Link, a six-story building and The SM Cyber West Avenue, a fifteen-story building which will be linked via bridge way to the SM City North EDSA mall and the nearby MRT station. Complementing the integrated approach is Grass Residences, a five-tower residential condominium building which stands on a five-hectare property within the SM City North EDSA Complex.

Even today, Sy said that SM City North EDSA will continue to grow “like a vibrant city as it adds more office spaces and a hospitality complex, a unique combination of high end retail, dining and green spaces, highlighted by a series of five cascading office towers connected by pedestrian sky bridges.

With SM City North EDSA as the flagship, SM continues to build malls and lifestyle cities, at a rate of four to five malls a year. Its recent lifestyle city development, SM Seaside City in Cebu, fashioned after SM Mall of Asia, promises to bring the shopping, dining, entertainment, working and the living experience to a whole new level in the Southern Philippine region.

“We have changed the Filipino lifestyle forever. Our malls are indeed as they are called—cities, places where families and friends gather together to shop, eat out, have fun, and even do their business transactions and hear Mass. We have become part of the lives of millions of Filipinos,” Sy said.

SOURCE: SM Investments Corporation

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Philippines: SM celebrates 30th anniversary of SM City North EDSA mall

Philippines: SM celebrates 30th anniversary of SM City North EDSA mall

Philippines: SM malls evolved into sustainable structures

Pasay City, Philippines, 2015-12-9 — /EPR Retail News/ — SM malls, which now total 56 in the country, have evolved into sustainable structures that are proving to be valuable and sensible investments.

In the last few years, SM malls have consciously integrated disaster risk reduction into design and operations in the midst of worsening effects of climate change.

Speaking before the Annual General Meeting of the United Nations International Strategy for Disaster Risk Reduction (UNISDR) in London last November 5, SM Prime Holdings, Inc. President Hans T. Sy shared that the company has taken major steps to ensure the longevity of its developments and safeguard its host communities given this context.

SM malls, with a total gross area of over 7 million square meters, have an average daily foot traffic of over 4 million people and have approximately 15,000 tenants.

“My experience has proven that investing in resilience of our company’s assets makes good business sense. Depending on the location and assessment of the project, around 10% of CAPEX (capital expenditure) is allocated to Disaster Resiliency,” Sy said. Sy is the only Filipino to be part of the UNISDR’s Private Sector Advisory Group.

“We see the entirety of our malls as a city in itself, with locators, employees, customers and the communities we serve,” Sy added.

The latest SM mall, SM City Cabanatuan in Nueva Ecija, which opened last October 19, 2015 is a good example of how SM Prime has adapted to climate change by making its infrastructure more disaster resilient. Cabanatuan was affected by Super Typhoon Lando (International name: Koppu) which caused massive flooding, mudslides and power outtages that affected nine million people in the northern region. The mall’s design allowed the free flow of creek floodwater during extreme flooding while the lower ground structure served as a flood catchment, thereby reducing the risk of flooding and ensuring the safety of the surrounding communities. The mall likewise served as a refuge for over 400 customers and families in the area at the height of the typhoon.

Over the past several decades, SM Prime has made significant inroads in incorporating disaster resiliency in its malls. The best example is SM City Marikina which opened in 2008 and was built on concrete stilts to allow flood water from the nearby Marikina River to flow freely. When Typhoon Ondoy (International name: Ketsana) flooded most of Marikina City, the mall stood high above flood waters and all its tenants were undamaged and safe.

The roads surrounding the Marikina mall are at ground level. Anticipating floods during heavy rains at that level, SM Prime constructed the first two levels of SM Marikina as parking areas without wall enclosures. The upper parking level was constructed at an elevation of 20.5 meters. During extreme floods, the parking floors are vacated and the supportive stilts allow for the free flow of water through the lower levels, while the business units continue to operate safely as was seen at the onset of Typhoon Ondoy (Ketsana) when a huge part of Marikina was flooded. The mall became a refuge for stranded people and food seekers. It also became a re-packing center for relief goods.

SM City Masinag in Antipolo, SM BF Paranaque, SM Angono and SM San Mateo both in Rizal province were provided with catch basins underneath the mall to hold water during flooding.

SM Muntinlupa in Alabang, was also designed to ensure the safety of the customers even if it was found to be located on a “discontinued major fault line”. Its design features a slab system that minimizes the effects of earthquakes.

The Mall of Asia Complex in Pasay City, one of SM Prime’s biggest investments located on 60 hectares of reclaimed property, has also been been designed for resiliency. He said that the main feature of the complex is that all structures were constructed at a height of 4.5 meters above the National Building Code requirements.

“SM Prime places crucial importance on disaster resilience, not as an additional cost, but as part of our core business strategy. It allows us to serve our communities better, to be competitive, to increase our value and bottomline. But most of all, disaster resilience ensures the safety of our customers and the communities where we operate,” Sy said.

Moreover, SM Prime and SM Megamall have been certified ISO 22301, the first in the Philippine Retail Industry for having provisions for Business Continuity Management.

Aside from introducing sustainable features in its malls, SM Prime also educates and updates its partners and stakeholders on disaster risk reduction (DRR) through internal procedures and various forums, such as the Green Retail Agenda, Business Case for Disaster Resilience, Top Leaders Forum and others. It also values and supports the government’s programs and initiatives in their information and educational campaigns such as the first Metro Manila Shake Drill for Earthquake Preparedness.

SM Prime also supports DRR projects such as the Weather Philippines Foundation’s Automated Weather Station (AWS) which specializes in local weather forecasting. All SM malls have also installed the AWS device which provides online 5-day local weather forecasts as a form of public service in support of the government’s weather forecasting.

SM has also donated 1,000 units of disaster resilient houses to victims of Typhoon Haiyan, the strongest storm to make landfall in the southern part of the Philippines.

SM Prime set up its efforts to lead Philippine businesses and communities disaster-resilient through the Private Sector Alliance for Disaster Resilient Societies (ARISE), a worldwide initiative spearheaded by the UNISDR to create more resilient societies.

ARISE was introduced for the first time in Southeast Asia during the 2015 Top Leaders Forum at the SMX Mall of Asia in Pasay City.

ARISE, which was launched in London last September, was created in order to implement the Sendai Framework for Disaster Risk Reduction, a 15-year global roadmap adopted in March 2015 which aims to curb disaster mortality and economic losses substantially.

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For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

SOURCE: SM Investments Corporation

Philippines: SM Prime Holdings opens its new regional landmark, SM Seaside City Cebu

Pasay City, Philippines, 2015-11-27 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, opens its new regional landmark, SM Seaside City Cebu, on November 27, 2015. It is SM Prime’s 56th mall in the country, and the third mall within Cebu – along with SM City Cebu and SM City Consolacion. The new destination mall provides an additional 430,000 square meters (sqm) in gross floor area (GFA), expanding SM Prime’s total retail space to 7.3 million sqm in the Philippines.

SM Seaside City Cebu, located within the SM Seaside Complex at the South Road Properties (SRP) in Cebu City, is the first of its kind in urban development in the SRP. It also promises to revolutionize the malling experience not only in Cebu, but in the whole Southern portion of the Philippines.

“We are inspired by the success of our Mall of Asia Complex in Pasay City, the first lifestyle city project or mixed-use development that offers retail, residences, offices, hotels and convention centers. We are replicating this concept of “lifestyle cities” in Cebu as we open the SM Seaside City mall. We see Metro Cebu as one of our important growth corridors in Visayas and Mindanao following our growth track in Metro Manila,” SM Prime President Hans T. Sy said.

The local communities are in for a treat as a new experience in urban living is in store with fresh lifestyle options in food, fashion, entertainment, and more. The new destination mall will open with 80% of space lease-awarded which serves as the new home to flagship stores of well-known local and international brands. It will also be the venue of unique and world-class events and entertainment. The shopping mall will have anchor tenants such as The SM STORE, SM Supermarket, Forever21, UNIQLO, Our Home, Ace Hardware, SM Appliance Center, Watson’s, The Body Shop, Kultura, BDO Unibank, and Chinabank.

SM Seaside City Cebu is the newest architectural jewel of SM Prime with its nautilus inspired design of concentric arcs from a central multi-purpose space featuring a “Seaside Tower“, a 147-meter iconic viewing tower which offers a sensational panoramic view of the entire city. A Sky Park provides a unique setting for diverse dining outlets situated in an elevated garden with soothing water features. The mall will have a skating rink, eight cinemas houses and 5,000 parking slots.

SM Seaside City Cebu is the first of many developments in the 30-hectare SM Seaside Complex. As the anchor development, it is slated to transform the city’s landscape as SM Prime builds residences, offices, an arena, a five-star hotel, and convention centers. The Complex features “The Cube”, a steel sculpture that symbolizes strength and stability of Cebuanos and its consistency reflects SM’s continued commitment to excellence.

SM Seaside City Cebu is the sixth SM Supermall to be opened this year, after SM Center Sangandaan, Cherry SM Shaw, and SM City Cabanatuan that recently opened last October 23, October 13 and October 9 respectively. To date, SM Prime has 56 malls in the Philippines and six in China with an estimated combined GFA of 8.3 million sqm.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

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For further information, please contact:

Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

SOURCE: SM Investments Corporation

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Philippines: SM Prime Holdings opens its new regional landmark, SM Seaside City Cebu

Philippines: SM Prime Holdings opens its new regional landmark, SM Seaside City Cebu

SM Prime Holdings set interest rates for its Peso-denominated Series D, 5.25-year retail bonds at 4.5095%, and Series E, 10-year retail bonds at 4.7990%

Pasay City, Philippines, 2015-11-9 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, has set the interest rates for its Peso-denominated Series D, 5.25-year retail bonds at 4.5095% p.a., and Series E, 10-year retail bonds at 4.7990% p.a.

SM Prime will issue an aggregate principal amount of Php15.0 billion of the Series D and Series E retail bonds, with an option to issue an additional amount of up to Php5.0 billion. The bonds will be offered to investors through underwriters starting November 4 to 13, 2015. The retail bonds are set to be issued to the bondholders on November 25, 2015.

Proceeds of the retail bond would be mostly used to the mall expansions and refinance loans of the company. By the end of 2015, SM Prime will increase its number of malls to 55 in the Philippines with an equivalent mall footprint of 7.3 million square meter in terms of gross floor area (GFA). Next year, SM Prime will open six new malls and expand two existing mall. Combined, the additional mall space is 571,631 square meters.

“The retail bond to be issued by SM Prime will largely support funding for our mall expansion programs in the coming years. This is a testament to management’s confidence that the economic growth of the Philippines will be sustained over the medium term and will eventually have a positive impact on the provinces as growth spreads to these areas.” SM Prime President Hans T. Sy said.

This series of SM Prime bonds due 2021 and 2025 is the second offering of Peso-denominated retail bonds to the public, subsequent to its successful maiden issue of Php20.0 billion in 5.5-, 7- and 10-year bonds in 2014. Similar to its previous bond issue, the SM Prime Series D and Series E retail bonds have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings. A rating of PRS Aaa is assigned to long-term debt securities with the smallest degree of investment risk, and denotes that SM Prime’s repayment capacity is extremely strong.

The bonds’ joint issue managers and joint bookrunners are BDO Capital & Investment Corporation, China Banking Corporation and First Metro Investment Corporation, which are also acting as joint lead underwriters together with BPI Capital Corporation, PNB Capital and Investment Corporation, United Coconut Planters Bank, SB Capital Investment Corporation, East West Banking Corporation, RCBC Capital Corporation, Land Bank of the Philippines and Philippine Commercial Capital, Inc. are participating underwriters for the bond issue.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

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For further information, please contact:

Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

SM Prime Holdings, Inc. opens its 55th mall in the Philippines, SM Center Sangandaan

Pasay City, Philippines, 2015-10-26 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, opens today SM Center Sangandaan, October 23, 2015.  It is SM Prime’s 55th mall in the Philippines, and first mall in the populous City of Caloocan, one of the16 cities within Metro Manila.  The new mall provides an additional 38,622 square meters (sqm) in gross floor area (GFA), giving SM Prime a total retail space of 6,825,206 sqm, the largest footprint in the country.

SM Center Sangandaan, strategically located  along the busy intersection of Samson Road and A. Mabini Street Sangandaan, Caloocan City, will give SM Prime access to the northern tip of Metro Manila, bringing a unique shopping experience closer to the highly dense cities of Malabon, Navotas and Caloocan.

“SM Center Sangandaan reflects SM Prime’s commitment to be part of the growth across communities. We are very pleased to open our first mall in Caloocan City which is a testament to the fact that Metro Manila is far from being saturated by modern retail facilities,” SM Prime President Hans T. Sy said.

The mall opens its doors to more than one and a half million Filipinos with 90% of the space lease awarded to various tenants. SM Center Sangandaan will have anchor tenants such as SM Supermarket, SM Appliance Center, SM Cinema, Ace Hardware, BDO, and Watsons.

There will be a total of three levels of prime spaces which includes four cinema theaters with a total seating capacity of 824 and 493 parking slots.The mall’s facade gets its inspiration from different shades of blue, gray and white, giving the exterior a quirky geometric visual design. The main interior features a high glass ceiling, complemented by white walls which maximizes daylight and adds futher dimension to the mall. SM Center Sangandaan was delicately planned around a simple yet efficient design that allows shoppers to easily stroll around and provides clear line-of-sight to all shops on all levels at the same time.

To date, SM Center Sangandaan is the fifth SM mall to be opened this year, after Cherry SM in Shaw Boulevard with a GFA of 24,165 sqm and SM City Cabanatuan. These malls recently opened last October 13 and October 9, respectively. The highly anticipated, SM Seaside City Cebu, is scheduled to open on November 27, 2015.

By the end of 2015, SM Prime will have 56 malls in the Philippines and six in China with an estimated combined GFA of 8,301,267 million sqm.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

SOURCE: SM Investments Corporation

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SM Prime Holdings, Inc. opens its 55th mall in the Philippines, SM Center Sangandaan

SM Prime Holdings, Inc. opens its 55th mall in the Philippines, SM Center Sangandaan

SM Prime Holdings to open its 53rd mall in Philippines on October 9, 2015

Pasay City, Philippines, 2015-10-8 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, opens SM City Cabanatuan on October 9, 2015. It is SM Prime’s 53rd mall in the country, and the second mall within Nueva Ecija – along with SM Megacenter Cabanatuan. The new mall provides an additional 154,020 square meters (sqm) in gross floor area (GFA), expanding SM Prime’s total retail space to 6,762,419 sqm in the Philippines.

SM City Cabanatuan is strategically located along Maharlika Highway in Cabanatuan City, which is the largest city in Nueva Ecija. The city, seated between the provinces of Pampanga, Bulacan, Tarlac and Aurora, serves as the Gateway to the North. This has made the city one of the business, transportation, medical and educational centers in Region III.

“The opening of SM City Cabanatuan is SM Prime’s commitment to be part of the growth of the province. The opening of new malls is timely given the expected higher growth in overall consumption in the 4th quarter. The economy’s sustained GDP growth in the past 5 years is now spreading to the provinces and we at SM Prime will continue to expand in these provinces that are enjoying high growth, like in Cabanatuan City, where we see significant development and huge unserved demand for shopping experiences,” SM Prime President Hans T. Sy said.

The mall will open with 90% lease-awarded, which are leased to various tenants and will serve over 270,000 residents. The shopping mall will have anchor tenants such as The SM STORE, SM Supermarket, Ace Hardware, SM Appliance Center, Watson’s, The Body Shop, Surplus Shop and UNIQLO.

The new SM Supermall will provide an exciting and state-of-the-art shopping experience for the local shoppers, making it a destination mall. SM City Cabanatuan creates a memorable identity on its primary highway frontage with bold and dynamic colors that complements a featured curved wall. The four-level mall also includes two Sky Gardens namely, the Garden Park,which provides covered shelter; and the Roof Park located at the fourth level. The mall will have six cinemas (five cinemas with a 275-seating capacity; one large format cinema with a 525-seating capacity) and 2,500 parking slots for cars and motorcycles.

The interior of SM City Cabanatuan was carefully designed around a simple yet efficient plan that allows shoppers to easily stroll around and provides clear line-of-sight to all shops on all levels at the same time. Interior bridges are strategically built that provide convenient access to all passages of the mall, supplemented by a centrally located glass elevator and escalators. The main interior features a dynamic ceiling that utilizes height of the mall to provide ample daylight, making the mall look spacious, bright and cozy.

To date, SM City Cabanatuan is the third SM Supermall to be opened this year, after SM City San Mateo that recently opened last May 15. For the rest of 2015, SM Prime is scheduled to open SM Center Sangandaan in Caloocan, andSM Seaside City Cebu. The company is also set to expand SM City Lipa in Batangas and SM City Iloilo this year. By the end of 2015, SM Prime will have 55 malls in the Philippines and six in China with an estimated combined GFA of 8,269,486 million sqm.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

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For further information, please contact:

Mr. Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940