SM Prime taps vast land bank to ride e-commerce logistics boom
SM Prime Holdings Inc. (SM Prime), through its industrial leasing arm SM Warehouses, is looking to expand its logistics facilities nationwide—banking on the group’s immense land bank to serve the growing e-commerce sector.
“Right now, we want to maximize SM Prime’s land bank and that it really is nationwide. If there are opportunities… we will definitely take a look at it,” said SM Prime Vice President and Head of Commercial Property Group Alexis Ortiga in a recent media briefing.
He explained, “we’re really looking at third-party logistics providers, e-commerce platforms, and even regional warehousing as our tenant partners,” adding, “while we currently don’t have plans to establish industrial parks, we do, and we can do, build-to-suit facilities that could accommodate manufacturing operations.”
SM Warehouses sees demand for logistics facilities and warehouses increasing due to the growing number of new generation consumers who want fast deliveries for the products they buy online.
“Given the current young demographics of the Philippines consisting of Gen Zs [and] millennials, we see e-commerce continuing, which, in turn, will support demand for industrial and logistics space,” said Ortiga.
These include fulfillment centers, last-mile in-city distribution hubs, and even specialized storage facilities.
Ortiga noted that this growing business “requires distribution centers and last-mile hubs that are closer to cities where most of the orders come from. These last-mile hubs actually complement the bigger regional warehousing facilities that would store more inventory but are a little bit farther from the city itself.”
SM Warehouses has just expanded its logistics space for Shopee partners SPX Express (SPX) and Scommerce Philippines Inc. (Scommerce) with the turnover of a new 40,000-square-meter (sqm) facility in Pasig City.
“Our strengthening relationship with SPX and Scommerce reflects our commitment to supporting businesses and local MSMEs [micro, small, and medium enterprises] with well-located, adaptable spaces that improve efficiency and enable long-term growth,” said Ortiga.
A leading logistics and delivery services provider to businesses across Southeast Asia, Taiwan, and Brazil, SPX previously signed a multi-year lease for approximately 86,000 sqm at the 130,000-sqm Silangan warehouse complex of SM Prime in Laguna province.
Scommerce provides warehousing and fulfillment solutions to sellers and businesses operating on Shopee’s platform.
Together, the Pasig and Laguna facilities of SM Prime provide more than 126,000 sqm of logistics space to Shopee’s logistics partners.
“As e-commerce evolves, our logistics infrastructure must grow with it. Our facility in Silangan, Laguna established a strong operational base,” said Martin Yu, head of SPX.
Yu added, “The new mega first-mile hub in Pasig brings us closer to Metro Manila customers, allowing us to increase processing speed and reduce delivery times. SM Warehouses provides the scale and operating standards we need to serve our sellers and buyers reliably.”
The two facilities serve complementary roles within SPX’s logistics network. The Pasig facility will operate as an urban distribution hub, bringing inventory closer to customers across Metro Manila. Designed for high-volume operations, it is expected to increase processing capacity and shorten last-mile delivery times.
The larger Silangan facility provides space for regional fulfillment and sorting operations, connecting southern Luzon to SPX’s nationwide distribution network.
Large regional facilities provide the scale required for sorting and fulfillment, while urban hubs reduce the distance between products and their final destinations.
SM Warehouses provides large-scale logistics and distribution spaces across the Philippines. It offers ready-to-move-in buildings, greenfield spaces, and custom build-to-suit facilities, ranging from 5,000 sqm to over 120,000 sqm.