SM City Bacólod Expansion in Bacolod City

SM City Bacólod Expansion

Construction | Retail | Bacolod City | Groundbreaking 2012 | Completed 2014 | 3 Floors | Floor area/size 31722 m2 | Views 2149 | Added by Eduard Elaydo Uy, 18 Mar 2012

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SM City Bacólod Expansion in Bacolod City

SM Investments Corp. will hike its capital spending by a third next year after reporting a double-digit growth in profit in the first nine months of this year.

In a briefing, Jose Sio, SMIC chief financial officer, said the holding firm has allotted P56.8 billion for its 2012 capital expenditures, 32.3 percent higher than this year’s P43-billion budget.

Bulk of the capex or P26.9 billion will be earmarked for the property development group, P20.7 billion of which will go to residential arm SM Development Corp.

Rosaline Qua, SMDC president and chief operating officer, said P16.7 billion will be used to finance the completion of ongoing projects and the construction of another four or five projects, equivalent to about 6,000 units. Projects lined up for launch in 2012 include an MPlace project in Bicutan, an SM Residences project in Makati and the roll out of an additional tower of Grass Residence in Quezon City.

SM Prime Holdings Inc. will spend P20.9 billion, P12 billion of which will be allocated for construction of malls in the Philippines and P9 billion for its China expansion. The budget also includes initial spending for big projects in South Road Properties in Cebu and in Taguig.

Jeffrey Lim, SM Prime president, said the company will open four malls next year in Lanang, Davao; General Santos City; Consolacion, Cebu; and Chongqing, China. The country’s biggest mall developer will also expand existing SM malls in Clark and Bacolod.

The capex of the retail group will reach P4.6 billion to cover the rollout of new stores and renovations, while the banking group will spend P3.4 billion for the upgrade of its computer systems and branch expansion.

The hotels and conventions segment has earmarked P1.8 billion for the construction of Park Inn by Radisson in Davao and a Radisson Blu Hotel in the Mall of Asia complex.

Sio said about two-thirds of the conglomerate’s capex will be financed through internally generated funds, adding that SMIC has approximately P40 billion in cash. A third of the budget will be funded through debt, equity or a combination of both.

The SM Group remains optimistic on its fourth-quarter prospects despite concerns emanating from Europe and the US, which have yet to impact its core businesses.

In the first nine months, SMIC’s consolidated net income grew 13.6 percent to P14.17 billion from P12.48 billion in the same period last year. Consolidated revenues grew by 13 percent to P140.10 billion from P124.34 billion in 2010.

“From an SMIC consolidated view point, we see that net income and bottom-line will be 14 percent better than last year in spite of what is happening in the Europe and US,” said Sio.

Among SM’s core businesses, the banking group contributed the most to earnings at 31.3 percent. Retail and shopping malls accounted for 28.1 percent and 23 percent, respectively. SM’s real property business added 17.6 percent.

SM Retail grew its earnings by 12 percent to P3.95 billion in the first nine months of the year driven by a 10-percent increase in total sales to P101.90 billion. SMIC shares added P2 to close at P559 each on Monday.

2 years ago

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