SM Investments Corporation (SMIC) has confirmed that the planned $1-billion initial public offering (IPO) of real estate SM Prime Holdings Inc., one of the largest integrated real estate companies in Southeast Asia, will be moved to 2024 instead of later this year.

During the investor conference organized by the Philippine Stock Exchange, SMIC Consultant for Investor Relations, Communications, and Sustainability Timothy Daniels said the IPO will likely happen next year.

He explained that they are currently assessing market conditions, particularly interest rates, inflation, foreign exchange rate, geopolitics, and general sentiment.

SM Prime initially planned to undertake its REIT IPO later this year to help fund its massive P136 billion capital expenditures for 2023 to 2024.

During the firm’s annual stockholders’ meeting, SM Prime President Jeffrey Lim said they are looking at the second half of the year to undertake the maiden public offering of the REIT with the intent of infusing an initial 12 to 15 shopping centers (out of 82 malls) worth $3.5 billion to $4 billion.

“So it's purely initially shopping centers. We actually have the portfolio details already, but we're still doing some evaluation with bankers. And I think the key really is the timing. Because you know, interest rates are still very volatile. So we want to make sure that when we launch something that it is sustainable, and that we can deliver our commitments,” he added.

Lim said it will initially be a mix of mature large and smaller malls and, after the IPO, they will infuse another batch of assets into the REIT, possibly including office buildings, to raise more funds for future development expenses.

SM Prime Chief Finance Officer John Nai Peng Ong said the firm is allotting P80 billion for capital expenditures this year, mainly for the development of new and existing malls as well as residential projects.

SM Prime is scheduled to open three new malls and expands certain malls in the Philippines this year, which will provide an additional 200,000 square meters of gross floor area. These new shopping malls will be in Bataan, San Pedro in Laguna and Sto. Tomas in Batangas.

Ong said that, about 10 percent of the P80 billion capex will be used for leisure developments, office buildings, and convention centers.

For its residential business segment, SM Prime aims to launch 15,000 to 20,000 residential units, subject to government approval of licenses to sell.

Likewise, this year, SM Prime is set to launch Lanson Place Hotel and Serviced Suites in Mall of Asia Complex in Pasay City.