Friday, May 30, 2014
nterAksyon.com By Krista Angela M. Montealegre

SM Prime chief finance officer Jeffrey Lim (left) and chief executive Hans Sy (right) (Krista Angela Montealegre/InterAksyon.com)

MANILA – SM Prime Holdings Inc on Friday launched its first mall in the Cagayan Valley region, underscoring the Sy-led real estate firm's optimism in the growth potential of provincial areas.

In a disclosure to the Philippine Stock Exchange, the holding firm for the real estate businesses of the Sy family said the launch of SM City Cauayan, which has a gross floor area of about 66,299 square meters, will bring its chain of malls nationwide to 49.

“We are excited about the opening of SM City Cauayan which is situated at the industrial and commercial hub of the Cagayan Valley region. We look forward to serving thousands of our countrymen as we continue to expand in various regions of the country which offer so many opportunities for growth,” SM Prime president Hans T. Sy said.

Riding on the strength of the Philippine economy, SM Prime is encouraged by the positive returns delivered by its provincial malls, prompting the company to expand outside Metro Manila, while serving as a catalyst for development.

Cauayan City is considered the economic center of the Cagayan Valley region, home to over 2,000 registered business establishments. It is also a regional crossroad given its proximity to 11 Isabela municipalities, making it accessible to over half a million people.

SM City Cauayan will be the company's first open strip mall, featuring a vibrant landscape that incorporates nature into the design. Ceiling fans will be strategically located to ventilate the arcaded walkways and storefront hallways, a green and cost-effective approach compared with the typical use of air conditioner units.

The new shopping mall will have an SM Cinema, the first movie theater in the region. Other flagship brands include The SM Store, SM Supermarket, Watsons, ACE Hardware and SM Appliances.

SM City Cauayan will feature fashion brands like Guess, Payless, Giordano and For Me and restaurants like Gerry’s Grill, McDonalds and Max’s. The mall will also house homegrown restaurants, namely, Chocolate Cofeeline, Yah Coffee and Café Isabela.

The carpark building has 570 slots and offers special parking spaces for wheelchair-bound drivers or people with special needs consistent with facilities offered in all SM malls nationwide.

SM Prime is the holding firm for the mall, residential, office and businesses of the Sy family following a corporate restructuring exercise approved by the Securities and Exchange Commission in October 2013.

With the consolidation of the Sy family's real estate assets, the enlarged SM Prime has become one of the largest integrated property developers in Southeast Asia and is now in a position to undertake larger scale projects with the participation of all of its business units.

SM Prime is spending P400 billion to expand its businesses that will double earnings within the next five years.

SM Prime’s net profit jumped 11 percent year-on-year to P4.58 billion in the first quarter from P4.11 billion on the strength of its shopping mall business.