MANILA, Philippines – Property giant SM Prime Holdings Inc. will open more retail developments attached to its residential condominium buildings, the firm’s chief financial officer Jeffrey Lim said Wednesday.
Lim said the firm is planning to launch two to three retail podiums within the year.
“Every SM Residences (project) will have a retail component, but it depends on the size of the development. So if the size is small, the retail component will be adjusted also to the size of the residential development,” he said at the sidelines of the SM Investments Corp. (SMIC) annual stockholders’ meeting at the SMX Convention Center.
The retail shops will be located on the building’s ground and second levels.
Lim said the cost and target date of completion of the retail component will depend on the residential development.
SM currently has three retail podiums attached to its Jazz building in Makati City, and Mezza Strip and Sun Residences in Quezon City.
SM has 21 condominium brands in Metro Manila and one in Tagaytay under SM Development Corp.
SM Prime is also planning to offer P20 billion in retail bonds to fund mall expansions and landbanking.
Lim said the proposed bonds, which will be the first retail bond issuance of SM Prime, will have tenors of seven and 10 years.
He said the issue date will depend on the submission of the firm’s first quarter results before the May 15 deadline.
“We’re doing the due diligence now, hopefully once it’s done...towards the end of May,” he said.
SM Prime’s parent company SMIC also recently announced that its application to raise as much as P15 billion through bonds has been approved by the Securities and Exchange Commission.
SMIC executive vice president and chief financial officer Jose Sio said the firm is open to more fundraising activities through bonds.
“We are fluid, we have to watch the market and see if there is an opportunity for us to go out,” Sio said on Wednesday.
SMIC’s board of directors also announced on Wednesday that it has approved the declaration of cash dividends amounting to P8.2 billion.
The amount represents 30 percent of SM's consolidated net income for 2013 of P27.4 billion.
SMIC will distribute P10.34 per share cash dividend for stockholders as of May 30, which is payable on or before June 26.