Southeast Asian giant SM Prime bets big on integrated developments, leveraging mall footprint

Sy-led SM Prime Holdings Inc., one of Southeast Asia’s largest integrated property developers, is banking on the popularity of its malls to provide a strong anchor in its planned diversification and expansion into integrated property developments (IPDs), particularly outside of Metro Manila.

During the firm’s annual stockholders’ meeting, SM Prime Chairman Henry Sy, Jr. said that, “Our evolution from mall development to integrated property development has paved the way for our next growth phase: becoming a ‘developer of developers.’”

“By creating dynamic, sustainable spaces that integrate malls, hotels, offices, schools, hospitals, parks, convention centers, and tourist destinations, we are shaping modern urban living—one that promotes connectivity, convenience, and inclusive growth.”

While embarking on township developments and venturing into the premium residential market this year, Sy said, “we will continue to drive organic growth by enhancing our existing portfolio. This includes expansions, renovations and a renewed focus on experiential offerings.”

“We recognize that malls are no longer just places t shop; they are community hubs where people gather to explore, connect and unwind. As lifestyles evolve, so do we—continuously shaping SM malls to meet the changing needs of Filipinos at every stage of life,” he explained.

To complement its retail offerings and create complete destinations, SM Prime is expanding its office, hotel and convention center businesses. 

“As economic and tourism numbers continue to improve, we are strategically positioned to meet the growing demand for high-quality workspaces, accommodations and event venues,” Sy said.

Meanwhile, amid the oversupply of condominium units in Metro Manila, SM Prime is extending its reach into provincial and high-growth markets.

“To achieve this, we will prioritize residential launches outside Metro Manila and develop integrated property developments (IPDs) in key locations across the Philippines. 

“Each IPD will be masterfully designed to become a hub for commerce, leisure, tourism and community engagement, stimulating regional economies, creating jobs and unlocking new opportunities,” said Sy.

SM Prime President and CEO Jeffrey C. Lim said their IPD projects will consist of existing developments that will be injected with additional components such as hotel and residential towers that will complete the township as well as fresh new areas that will be masterplanned with all the components of an IPD.

"The Mall of Asia complex is actually our first IPD," he sading adding that the reclamation project in Manila Bay will also be masterplanned and launched as an IPD while areas such as the Megamall complex, which already has an office component, still has room for a hotel.

For SM Prime’s Pasay City IPD project, Lim said horizontal sand pouring is 60 percent complete as of the end of 2024, with full completion targeted by the end of 2025. Horizontal development is scheduled to begin in 2027.

“The master plan is expected to be finalized in the first half of 2025, while we continue processing the necessary documents for land titling. The full project handover to the national government and the Pasay City Local Government Unit (LGU) remains on track for 2028,” he added.

Lim said SM Prime is also diversifying its business portfolio through several transformative projects citing that, “Our foray into urban center development, smart city initiatives and premium primary residence offerings represents a significant step forward in our evolution.”

“To build a balanced portfolio, we will begin offering premium primary residences to complement our economic, medium-cost and leisure offerings. All of our residential projects will also be consolidated under the SM Residences brand,” said .

He added that, “Given Metro Manila market headwinds, our 2025 mid-segment residential launches will concentrate on key regional areas. Subject to evolving market conditions, we plan to launch 7,000 to 10,000 units, priced at ₱2 million to ₱4 million, in horizontal and mid-rise formats.”

Meanwhile, Lim said that, “Together with Belle Corporation, we are finalizing our master plan for Tagaytay Highlands to enhance the estate and turn it into a self-sustained community.

“The Hamilo Coast master plan will likewise be refined and expanded to drive project launches and optimize sales velocity.”

On the other hand, he said “To bolster our presence in the hotel and MICE sectors, we are investing ₱15 billion in a five-year expansion program. This program involves the development of eight new hotels and two convention centers in key destinations”.

Complementing this expansion, SM Prime is also upgrading existing properties. At Taal Vista, Pico Sands Hotel and Park Inn by Radisson Davao, they are adding function rooms, introducing new food and beverage outlets and undertaking guestroom renovations.