SM Prime plans $1-b REIT offering with initial assets of up to 15 malls

By Jenniffer B. Austria

PROPERTY developer SM Prime Holdings Inc. disclosed Tuesday its plan to raise a record $1 billion from its real estate investment trust offering in the second half of 2023.

SMPH president Jeffrey Lim said in a news briefing following the annual stockholders meeting the company had started the process of incorporating an REIT unit that would initially own 12 to 15 malls in the Philippines.

“Hopefully we can launch the REIT by second half of the year subject to market conditions,” Lim said.

SM Prime owns 82 malls in the Philippines and seven malls in China. Of the 82 Philippine malls, 30 to 35 are

Gov’t approves Bacolod IT park, expansion of Batangas ecozone

By Othel V. Campos

THE Office the President approved and proclaimed a new economic zone in Bacolod City and the expansion of another in Batangas province, with combined investments of P1.64 billion, the Philippine Economic Zone Authority said Tuesday.

“The two economic zones will certainly bolster and spread economic growth outside the National Capital Region,” said PEZA director-general Tereso Panga.

President Ferinand Marcos Jr. signed Proclamation No. 200 on April 14, 2023, promulgating a P777.35-million IT park in Banago, Bacolod City to be known as Robinsons Cyberpark Bacolod.

He also approved Proclamation No. 402 on April 19, 2023, designating several parcels of land in Barangays Santiago, Luta Sur and Bagong Pook in Malvar, Batangas for the expansion of Lima Technology Center Special Economic Zone. The expansion is estimated to bring in P864.224million in investments.

Panga said PEZA is on track on to cre- ating 30 economic zones outside the National Capital Region every year to diffuse the benefits of economic zones and bring jobs closer to Filipino workers. fully mature, according to the company.

The agency is keeping its 10-percent growth forecast for 2023, he said.

PEZA said 20 more applications for economic zones were awaiting the approval of the President, including 11 IT centers, eight manufacturing and one agro-industrial ecozones.

“It is exactly what we need to continue what the administration is gearing towards: inclusive economic development where thousands of jobs are created in the respective jurisdictions. More investments mean more exports and more jobs,” Panga said.

PEZA vowed to strengthen the ease of doing business and digital transformation especially with the inclusion of the economic zone development program in the Philippine Development Plan 2023 to 2028 and in support of the Department of Trade and Industry’s science, technology, innovationdriven industrialization strategy.

“We can initially transfer 12 to 15 mature malls into the REIT, and then the rest will be for the future for the growth of SM REIT,” Lim said.

SMPH is the remaining major property developer in the country that has not launched an REIT company.

SMPH said it would use the proceeds from the REIT listing to partially fund a $2-billion reclamation project in Pasay City.

The Bay City reclamation project, which will be connected to the Mall of Asia Complex, is a 360-hectare mixeduse development with various components such as mall, offices, residences, entertainment arena, hotel and convention center.

SMPH chief finance officer John Nai

Peng Ong said the company earmarked P80 billion in capital expenditures for 2023 to expand its mall, residential, office and hotel businesses.

He said that for the residential business, the property firm lined up 10 new projects with total sales value of P80 billion.

Jose Mari Banzon, president of residential arm SM Development Corp. said these projects are mostly affordable to mid-rise projects located in key provinces.

Notice Of 2023 Annual General Meeting

Notice is hereby given that the Annual General Meeting of FIRST GEN CORPORATION will be conducted at 10am on Wednesday, May 17, 2023, at The Fifth East at Rockwell, 5th Floor Power Plant Mall, Rockwell Center, Makati City. Following is the agenda1 of the meeting: 1.

Only stockholders of record as of March 3, 2023 are entitled to notice of, and vote at, the meeting.

Pursuant to the March 13, 2023 Notice of the Securities and Exchange Commission, the Information Statement and its attachments, minutes of the previous meeting of stockholders, and other documents related to the meeting, can be accessed through the company website www.firstgen.com.ph. The meeting proceedings will be recorded in audio and video format.

Should you have any questions about the conduct of the meeting, you may send an email to 2023asm_info@firstgen.com.ph.

Pasig City, April 25, 2023.

Banzon said SMDC is also preparing to launch a new product line—affordable lots. SMDC will initially launch the new product in Tarlac, Pampanga, Cagayan de Oro, Davao and Bacolod.

Banzon said despite the rising interest rates, demand for residential units remained strong, particularly from overseas buyers.

He said at least 70 percent of SMDC’s sales came from overseas market, while 30 percent represented local buyers.

SM Prime registered a P30.1-billion consolidated net income in 2022, up by 38 percent from P21.8 billion in 2021.

Consolidated revenues grew 29 percent to P105.8 billion from P82.3 billion, while consolidated operating income climbed 52 percent to P49.2 billion from P32.4 billion.