MANILA - SM Prime Holdings plans to raise $1 billion when it lists its Real Estate Investment Trust (REIT) this year.
SM Prime President Jeffrey Lim said they will list the REIT in the second half of the year subject to market conditions.
"Total valuation should be around $3.5-4 billion. It's purely initially shopping centers," Lim revealed.
"The key really is the timing because interest rates are still very volatile, so we want to make sure when we launch it, it could be something sustainable and that we can deliver our commitments," he added.
Initially, 12-15 malls would be included in the REIT and SM will assess if more malls and office buildings will be included.
A major chunk of the proceeds will go to fund the reclamation project in Pasay. About 60 hectares of "Island A" has been completed, while about 300 hectares of "Island B and C" will be done in the coming years.
SM Prime is the last big property developer that has yet to launch a REIT.
Lim remarked, "Sabi nga nila save the best for last."