With the burgeoning real estate activities within Mindanao, the largest mall chain in the Philippines announces its expansion plans in the island region within the next three years.
SM Vice-President for Operations Oliver John Tiu disclosed on Tuesday’s bizforum at DermPath SM City Davao that five more malls will be established from 2017 until the end of 2018: SM CDO Downtown Premiere in Cagayan de Oro, SM Butuan.
According to Tiu, the five-storey SM CDO Downtown Premiere in Cagayan de Oro is slated to open on May 12, 2017. It is the biggest among the SM malls in Mindanao with a land area of 150,000 square meters
On 2018, SM Butuan is slated to open on the first quarter while SM Tagum is set to open on the fourth quarter of the year.
Meanwhile, the vice president said that SM is also considering the establishment of SM Toril and SM Tagum for the end of 2020. However, he said the company is still conducting a marketing study to determine which of the two will be prioritized.
“If the market (in Zamboanga) will say one SM will be good, because it is really SM Mindpro (Mindpro Citimall), the SM brand is there but it’s off course a joint venture. Whatever the original structure is, we’ll have an expansion. But if they say, ’okay the market is good enough for an SM Mindpro’, and off course the competitors there, then we will delay the construction for a while,” explained Tiu.
Tiu added, setting up SM Toril would depend on the development of the southern part of the city and the needs of its neighboring areas such a North Cotabato and Digos City.
He stressed the feasibility study which will last for two years will determine which of the two areas will be prioritized for development.
Tiu said, before setting up a mall, the company considers its competitors, the disposable income of the establishment as well as its money circulation which can be supported by a feasibility study.
“To build a mall, it needs a minimum of P2 billion,” said Tiu who added that it will take at least a year to complete the construction of a mall.
At 9 percent revenue growth, Tiu disclosed SM malls in Mindanao have already surpassed the total revenue of other SM malls in Luzon by 7 percent.
Tiu attributed this to the burgeoning competition among Luzon-based malls which affects the performance of other SM branches as well as the fact that the President comes coming from Mindanao.
Alongside this development, SM City Davao mall manager Lynette Lopez confirms the new addition to the wide array of brands featured by SM City Davao and SM Lanang Premiere, one of which is Uniqlo, a Japanese fashion wear retail brand.
Lopez added, in 2016, SM City Davao catered 45 new tenants mostly food businesses as well as high fashion.
“We are looking forward to 45 more this year which makes up 97 percent of our occupancy,” said the mall manager.
Still the largest mall chain with 60 branches nationwide including its acquisitions and mergers, SM eyes to establish 15 more malls across the Philippines to attain its vision of setting up 75 malls nationwide at the end of 2018.
