Filipino billionaire Sy family’s SM Prime to spend $9B on 5-year expansion plan

Its chairman, Henry Sy Jr., called the plan its boldest expansion and diversification since it launched its first mall in 1985 to capitalize on rising consumer wealth.

"We need to continue expanding and investing because the opportunities just keep growing," he told Forbes on the sidelines of SM Investments’ recent stockholders meeting. "More people want to live, shop, and work in improved surroundings."

As part of its roadmap, SM Prime aims to open 10-15 new malls, up to five large-scale, integrated property developments, eight hotels, two convention centers, a dozen office and residential towers, and four luxury residential projects.

Company president Jeffrey Lim said most of the funding will come from internal cash flow.

The expansion push comes as competitors like Ayala Land and Robinsons Land ramp up their own retail and property developments.

SM Prime is currently the Philippines’ largest mall operator with 87 shopping malls across the country, with a total gross floor area of 9.4 million square meters. Its portfolio also includes 10 hotels offering over 2,600 rooms, eight convention centers, and more than 22 office buildings.

In the first quarter, it posted a net income of 11.9 billion pesos, an 11% increase from 10.7 billion pesos in the same period last year, according to its press release issued last week.

Its revenue for the period rose 7% year-on-year to 32.8 billion pesos, driven by stronger rental collections, real estate sales, and other income streams. Malls remained the primary driver of profitability, accounting for 69% of the firm’s earnings.

While the new U.S. tariffs pose potential external risks, SM Prime expressed confidence that the Philippines’ largely domestic-oriented economy and limited direct exposure will help buffer adverse effects. Robust consumer spending and favorable macroeconomic trends are also expected to aid its continued growth.

"We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders," Lim said.

The firm’s parent company, SM Investments, is one of the largest conglomerates in the Philippines. It was founded in 1958 as a shoe store by the late tycoon Henry Sy Sr. After his passing in 2019, his six children inherited his business empire. Today, the Sy family ranks among the wealthiest in the Philippines with a combined net worth of US$13 billion.