MANILA — SM Prime Holdings Inc on Thursday said it is investing up to P33 billion this year to expand its malls, hotels, and even office towers, among others.

The mall and property giant said this is amid expectations of a sustained recovery in consumer demand and forecast of over 6 percent growth by the Philippine government.

SM Prime also noted that the midterm elections slated this year are expected to boost spending.

"We expect moderating inflation, easing interest rates and election-related spending to fuel our growth in 2025. Our malls should do well and our office, hotel and convention centers could provide additional upside," said SM Prime President Jeffrey Lim, highlighting the company's strong outlook.

The company said it expects election-related expenditures to stimulate aggregate demand and spending in various sectors, particularly retail. With a network of 87 shopping malls, SM Prime said it is strategically positioned to capture this surge in spending. More than half of the company's revenues come from its mall operations.  

SM Prime said it has earmarked around P21 billion for the expansion of its malls' gross floor area (GFA), with a target of 8.08 million square meters total GFA at the end of 2025.

The company said it will also invest around P6 billion in its hospitality and MICE (Meetings, Incentives, Conferences, Exhibitions) businesses to build two convention facilities, renovate hotel rooms and add new food and beverage facilities in existing hotels.

The company's office unit, SM Offices, is also investing P6 billion to develop new office towers and work spaces to cater to tech and BPO firms.

"SM Prime’s investments underscore its commitment to expanding and enhancing commercial properties that drive growth, attract businesses and meet evolving consumer demands, solidifying its leadership in the property sector," the company said.

SM Prime booked a consolidated net income of P33.9 billion in the first three quarters of 2024, which was 12 percent higher than in the same period in 2023.