SM to enter upscale condo, subdivision development

Property giant SM Prime Holdings Inc. is diversifying into upscale residential condominium and subdivision development this year alongside plans to put up new shopping malls in line with a P50- billion annual expansion program.

This year, SM Prime is set to open five new shopping malls in the Philippines which will bring its mall portfolio in the country to 65 plus seven malls in China.

In the residential segment, SM Prime’s property arm SM Development Corp. (SMDC) is set to launch 15,000 to 18,000 residential units in high-rise, mid-rise as well as house and lot developments, SM Prime president Jeffrey Lim announced during the company’s annual stockholders meeting on Tuesday.

This is more aggressive than the 15,000 residential launches of SMDC last year. Sales take-up last year stood at 12,700 units.

SMDC is upbeat on the residential segment this year, with sales take-up in the first quarter rising by 54 percent year-on-year to P12.9 billion.

Overall, SM prime expects to sustain a double-digit growth in earnings in line with a five-year plan to double profit by 2018.

This May, SMDC is set to launch its first subdivision development on a 30-hectare estate in Mabalacat, Pampanga, which is expandable by another 30 hectares. This project, which is estimated to cost P1.4 billion, will offer up to 5,000 units within the price range of P1.8 to P2.5 million. The initial phase of development will offer 1,000 units.

“We’re completing the whole package for residential and we may even go to high-end (development),” SM Prime chair Henry Sy Jr. said in a press briefing after the stockholders meeting. He added that the group was “very confident” on entering new market segments and new geographical locations and was set to utilize the group’s 1,500-man sales force. The foray into the upscale residential segment may happen within this year, he said.

In mainland China, SM Prime will also continue its expansion. It has started construction of its first residential project in Chengdu, near its existing SM shopping mall.

Hans Sy, recently retired SM Prime president who now chairs the executive committee, said the group would continue to explore opportunities in China, particularly in Fujian province. Although SM Prime has built all of its malls in China from scratch, he affirmed that the group was open to opportunities to buy existing malls.

SM Prime allocates 80 percent of its capital expenditure on project developments, mostly for mall and residential development. The remainder is used for landbanking.

“SM Prime will continue to expand its mall and residential businesses which are the major revenue drivers. We will further reach out to provincial cities as an integrated property developer and as a strategic partner, given the tremendous opportunities in light of higher government spending on infrastructure development across the country,” Lim said.

This year, SM Prime is scheduled to open five new malls in the Philippines, all of which are outside Metro Manila. These are: SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas. By the end of 2017, its 65 malls in the Philippines and seven malls in China will have a combined gross floor area of 9.2 million square meters. In the Philippines, 43 percent of its malls are located in Metro Manila, 35 percent in Luzon outside Metro Manila, 14 percent in Visayas and 8 percent in Mindanao.

SM Prime has committed P50 billion for capital outlays annually to achieve its development roadmap through 2018. Lim said SM Prime was on track with its five-year roadmap.

Property lifts SM profit

SM Investments Corp. said profit last year reached  P31.2 billion, up 8 percent from the prior year’s P28.89 billion.

“Property accounted for 39 percent of total earnings, with banks comprising 37 percent and retail 24 percent,” the company said.

Consolidated revenues reached P362.8 billion, up 9 percent from the P332.8 billion in 2015,  driven by an 8 percent increase in retail revenues and a 12 percent growth in property revenues.

“Our core businesses performed well and continue to grow in line with the country’s strong economic development. We are optimistic about continued development and that government plans for infrastructure, agriculture and tourism in particular will enable broader regional growth. SM continues to prioritize regional investment and our nationwide expansion plans are focused on effective execution,” said Harley T. Sy, SM president.

SM said its retail operations under SM Retail Inc. posted profits of  P10.6 billion, up 7 percent from P9.9 billion the prior year. Consolidated revenues reached P276.5 billion, up 8 percent.

In 2016, SM announced the merger of SM Retail with several leading specialty retail stores with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. The specialty stores added 153 stores nationwide last year.

“Following the retail merger last year, the performance of our specialty retail has been boosted by discretionary spending, especially in areas such as home furnishings and do-it-yourself goods, tracking the strong consumption and overall growth of the economy,” said Sy.

At end-2016, SM Retail had a total of 2,110 outlets, comprising 57 THE SM STORES, 1,556 specialty retail outlets, 48 SM Supermarkets, 44 SM Hypermarkets, and 156 Savemore, 39 WalterMart and 210 Alfamart stores.

The property business meanwhile saw unit SM Prime Holdings, Inc., post recurring profit of P23.8 billion, up  14 percent. Consolidated revenues hit P79.8 billion, up 12 percent.

SM Prime said revenues of its mall business, which includes rentals, cinema and event ticket sales and other revenues, grew 9 percent to P48.6 billion due to added retail spaces in the last two years.

To date, SM Prime has 60 shopping malls in the Philippines (7.7 million sqm GFA) and seven in China (1.3 million sqm GFA) with the recent addition of the Tianjin mall.

SM Prime’s residential operation meanwhile saw unit SM Development Corp. (SMDC), Highlands Prime and Costa del Hamilo among others, posted consolidated revenues of P25.4 billion, up 13 percent. The growth was largely due to higher sales take-up on ready for occupancy (RFO) units from projects such as Princeton, M Place and Mezza II in Quezon City and Jazz Residences in Makati, it said.

SMDC’s reservation sales grew 18 percent to P46.7 billion in 2016, translating to a 15 percent improvement in unit sales to 16,320 units.

The commercial space business meanwhile said revenues reach P2.7 billion, up 32 percent, mainly due to rental revenues from the newly opened FiveEcomCenter that is almost 100 percent occupied.

SM Prime’s Hotels and Convention Centers posted 32 percent growth in revenues to P3.2 billion largely due to improved occupancy rates and the opening of Park Inn Clark in December 2015 and Conrad Manila in June 2016.

Lending business under BDO Unibank Inc., meanwhile saw profit hit P26.1 billion in 2016. Net interest income grew by 15 percent to P65.6 billion, driven by the 16 percent growth in gross customer loans to P1.5 trillion. Deposits grew 15 percent to P1.9 trillion, primarily in the form of low-cost CASA deposits. Fee-based income was up 15 percent to P22.2 billion while insurance premiums contributed P8.0 billion, compensating for the decline in trading gains to P4.8 billion last year.

SM said BDO successfully completed its rights offer in January, raising a total of P60 billion ($1.2 billion) in fresh capital.

“This will allow the Bank to sustain its medium-term growth targets and recent strategic initiatives that include ONB’s expansion and coverage of  underserved markets, refocusing efforts on the insurance business through BDO Life, and creating an online stock trading platform to serve a fast-growing market through BDO Nomura.  The new capital will also provide a comfortable buffer over higher minimum capital requirements with the staggered implementation of the Domestic Systemically Important Bank (DSIB) surcharge,” it said.

China Banking Corp. (China Bank),another lending unit, meanwhile reported profits of P6.4 bilion,  15 percent higher than last year, on the back of sustained growth in core and fee-based businesses.

Net interest income was up 11 percent to P16.7 billion while gross loans expanded 24 percent to P393.7 billion. Fee-based revenues improved 14 percent to P5.1 billion. Total deposits grew 23 percent to P541.6 billion underpinned by growth in checking and savings accounts by 21 percent to P276.4 billion.

China Bank issued the first tranche (P9.6 billion) of its P20 billion long-term negotiable certificates of time deposits (LTNCD) in 2016 to support its strategic initiatives and business expansion. Its investment house, China Banking Capital Corp. also put up a stock brokerage house, China Bank Securities Corp. and a special purpose company CBC Assets One (SPC), inc.

SM closed the period with assets  P861.5 billion, up 10 percent.

“SM maintains a healthy balance sheet with a conservative gearing ratio of 37 percent net debt to 63 percent equity,” SM said.

Bay area emerging as Metro Manila’s next CBD

MAJOR commercial development projects are a sign that the Bay Area is “shaping up” to be the next big central business district in Metro Manila, Colliers International said.

“We believe that the Manila Bay area will be the next big CBD in Metro Manila, and it is now shaping up with major residential, retail, office, hotel and entertainment developments,” Colliers International Director for Research and Advisory Julius Guevara said in a text message.

The Bay Area, roughly the area west of Roxas Boulevard south of the Cultural Center of the Philippines complex, is mostly known for its leisure developments such as casinos, but upcoming office developments are expected to catapult the area into a business district.

Guevara told The Manila Times that the development of office, retail, hotel and entertainment projects in the area is also creating demand for the residential segment.

Guevara noted the large upcoming residential supply in the area, with an estimated 25,000 residential units set to come online in the next few years.

“There’s actually a lot of inventory in the Manila Bay area. SMDC (SM Development Corporation) is the biggest developer there with thousands of units in the Sea Residences, Shore Residences, Coast Residences and S Residences,” Guevara said.

Other developers present in the area, according to Guevara, include Federal Land, Megaworld, Anchor Land, Zhongfa Development, and D.M. Wenceslao.

“The actively selling projects in the area represent an upcoming inventory of almost 25,000 units, so this indicates that there’s a lot of interest in residential projects in the area,” Guevara said.

Similarly, Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. noted the strong inventory of residential units in the area.

“There are approximately 10,000 existing condominium units and more than 18,000 units to be made available by end-2019,” Cordero said in a text message.

Cordero noted that one attractive factor of the Bay Area residential market is the low-density developments it offers.

“Aside from the new commercial and leisure developments, the appeal of Bay City is also due to the famous Manila Bay sunset and relatively low density developments,” Cordero expressed.

The head of research emphasized that another selling point of the area is the accessibility it will offer residents in the future.

“In the future, the area will also be one of the well-linked areas in Metro Manila, with the completion of the NAIA Expressway with direct links to the Metro Manila Skyway system,” Cordero added.

Moreover, Guevara noted that the Bay Area residential market caters to a mix of buyers, depending on the positioning of the project.

“For example, the SMDC projects are under the affordable and mid-income segments so their buyers reflect that profile,” Guevara said.

He added that the area is also attracting customers from the Overseas Filipino Workers (OFW) market, driven by the roadshows abroad conducted by developers.

“Anchor Land and Megaworld have a lot of regional/international investors because of their roadshows abroad,” Guevara concluded.

SM Prime 1st half core profit up 12%

SM PRIME Holdings, Inc. netted 12% more earnings from its core businesses during the six months to June, with its expanded mall operation and construction accomplishments in certain residential projects delivering higher revenues.

In a statement issued on Monday, the Sy-led company said core net income increased to P12.6 billion from the P11.2 billion recorded a year earlier. This follows a 9% rise in consolidated revenues to P39.2 billion in the six-month period from P35.9 billion.

“SM Prime’s integrated development program in the Philippines that is geared more towards provincial expansion sustained its financial performance in the first half of the year,” company President Hans T. Sy was quoted as saying in the statement.

The property developer’s mall business raked in P23.6 billion or 60% of the consolidated revenues. This settled 9% above the P21.7 billion booked for the comparable 2015 period, on the back of a 7% growth in same-store sales and contribution from retail spaces added in the past two years.

Mall operations in China brought in 9% of revenues from the segment, generating P2.1 billion or 8% over the P1.9 billion seen a year earlier.

SM Prime currently has 58 malls in the Philippines and six in China, with an aggregate gross floor area of 8.5 million square meters (sq.m.). The company targets to open another two malls within the year: Cherry SM Congressional in Quezon City and SM City East Ortigas in Pasig City. It is also expanding SM Center Molino in Cavite and SM City San Pablo in Laguna alongside.

The company’s residential business, meanwhile, accounted for 34% of the consolidated revenues. It managed to grow its income by 6% to P13.2 billion from P12.5 billion, as SM Development Corp. (SMDC) advanced construction in projects launched from 2013 to 2015.

SM Prime also cited the slower hike in consolidated costs of real estate, which reached P7 billion or 4% above the year-ago level, due to contained construction costs.

In the second quarter, reservation sales bounced back to P14.5 billion from the P8.1 billion seen in the preceding three months. This allowed SMDC to grow its sales value 20% to P22.6 billion from P18.8 billion during the six months.

SM Prime’s housing group reported an 18% year-on-year improvement in sales volume to 8,091 units from 6,868 units, largely from the recently launched Shore 2 Residences, Coast Residences and S Residences in Pasay City.

The company is looking to launch additional 6,000 to 8,000 units in Quezon City, Pasay City and Tagaytay City as well as economic housing in Bulacan, Cavite and Cabanatuan by the yearend.

Income from the commercial properties segment increased 51% to P1.1 billion, equivalent to 3% of the consolidated revenues of SM Prime during the six months.

The increase arose from the opening of SM Cyber West in Quezon City and Five E-Com Center in Pasay City, with a combined gross floor area of 171,000 sq.m. and occupancy rates of 100% and 99%, respectively.

To date, SM Prime has six office buildings spanning 371,000 sq.m. mostly located within the Mall of Asia Complex in Pasay City. The company is scheduled to open another two — Three E-Com and Four E-Com Centers — in 2017 and 2018, respectively.

Under its hotels and convention centers business, meanwhile, SM Prime opened the 154-room Park Inn Clark in Pampanga in December 2015. It also launched last June the 347-room Conrad Manila atop the S’ Maison, a two-level, upscale retail podium in Pasay City.

SM Prime has yet to disclose its consolidated net income and the breakdown of its second-quarter financial performance.

In the first quarter, SM Prime saw its net profit decline by 54% to P5.8 billion from P12.63 billion, which included a one-time trading gain of P7.4 billion on marketable securities. Without the extraordinary item, the company’s core net income rose 12%.

The property developer is targeting a net profit of P32 billion over the next three years, as it completes 10.96 million sq.m. of shopping malls; 139,000 residential units in 41 projects; 2,500 leisure homes in 16 developments; 460.000 sq.m. of leasable space in seven office buildings; and 2,187 rooms in 10 hotels by 2018.

“SM Prime is well-positioned for higher growth given that the Philippines’ economic upturn is starting to spread in the provinces,” Mr. Sy said.

Executive Vice-President and Corporate Information Officer Jeffrey C. Lim will assume the task of guiding SM Prime toward reaching its growth targets.

In a disclosure to the Philippine Stock Exchange, the company announced that its board of directors approved on Monday the appointment of Mr. Lim as president effective Oct. 1. He will replace Mr. Sy, who will remain as director and chairman of the executive committee.

Shares in SM Prime climbed 65 centavos or 2.23% to P29.85 apiece on Monday.

Metro residential market seen bottoming out this year

THE Metro Manila residential market may bottom out this year, with property developers expected to ramp up new project launches to cater to growing housing demand, property consultancy said on Tuesday.

In a briefing, Claro dG. Cordero, Jr., head of Jones Lang Lasalle (JLL) Philippines’ research, consulting and valuation advisory services, said developers have remained cautious so far, with unit launches in the first half reaching only 38% of the close to 10,000 units rolled out in 2015.

“We are at the bottom. By next year, we might be seeing improvement in new launches and the issuance of licenses to sell because the supply pressure is not there anymore,” Mr. Cordero said.

“In terms of new product launches, the bottom will likely be at 5,000 units per year in Metro Manila. This year, we may likely hit 5,000 units,” he added.

The supply of new units in the market will drop to around 25,000 next year from a high of roughly 40,000 in 2015 and 2016, easing the pressure and prompting developers to start ramping up project roll outs, Mr. Cordero said.

Oversupply worries in the condominium market triggered by the aggressive expansion of Henry Sy-led SM Development Corp. (SMDC) have prompted developers to delay the launch of some projects since reaching its peak in 2012.

“They are getting aggressive. As they become aggressive, the other developers will follow through,” Mr. Cordero said.

By the end of the year, SMDC is expected to become the country’s biggest developer in terms of completed mid-range to high-end residential units in Metro Manila with 45,090 units, followed by Megaworld Corp. at 37,900 units and DMCI Project Developers, Inc. at 25,300 units.

By 2021, SMDC is seen retaining its dominant position with 69,200 units followed by Megaworld at 54,000. Ayala Land, Inc. will take the third spot with 43,900 units.

The Philippines’ high-growth trajectory and growing population will continue to fuel demand for housing, office and factory space, JLL National Director P. Ryan Isip said.

At end-March, Manila ranked 10th with lowest rental value and fourth with lowest capital value among 27 key Asian cities, JLL Head of Tenant Representation Lizanne H. Tan said.

“There is a lot of space between where we are today and where we can be… If you look at the cost of money as to what you can make, the rental yields [provide] an opportunity. This is one of the best opportunities in the region. If anybody doesn’t have a real estate play here, it’s time to get into it,” Mr. Isip said.

SMDC win big at PH’s biggest real estate awards

Last year’s Best Developer winner SM Group was nominated for 10 awards through its various subsidiaries and eventually took home Best Commercial Development (Philippines) for SM Seaside City Cebu, a retail project undertaken by its commercial investment arm, SM Prime Holdings Inc.

The conglomerate, headed by Henry Sy Sr, the country’s richest man, also won the coveted Special Recognition in CSR for providing Filipinos “five ­star” homes in prime locations around the country, as well as promoting a conducive learning experience for the youth by building and remodelling overpopulated public school classrooms across the islands.

Presented by Hansgrohe, the fourth edition of the Philippines Property Awards 2016 welcomed a new category to reward the country’s outstanding boutique developers. In the category for Best Boutique Developer, AppleOne Properties Inc pipped King Properties. Fellow Cebu­based firms, Primary Homes Inc and Cebu Landmasters Inc, collected several Winners and Highly Commended accolades in other categories.

With this year’s entries doubling to more than 200 compared to 2015, the time has come to widen the scope of the programme, a move that was welcomed by the independent panel of judges and trusted awards supervisor BDO.

“Whilst there’s still an emphasis on Metro Manila, there was an increase in the number of entries from Cebu and also Davao,” said Lindsay J Orr, chief operating officer of Jones Lang LaSalle Philippines and chairman of the judges. “What we need to do now is to continue to bang the drums and build the awareness for the Philippines Property Awards so that next year we make sure that we’ll have an even larger section of entries from other regions.”

The rise of the country’s emerging markets was featured prominently at the Property Report Congress Philippines, a high­level forum that discussed the past, present and future of the local real estate industry.

It was the first time that the Congress took place in the country after the successful debut in Singapore in 2015. The Philippine conference preceded the black­tie gala gala dinner at the Fairmont Makati and was joined by experts from all over the archipelago and further afield, including current and former Winners and Judges from the Philippines Property Awards.

JLL Philippines’ Orr delivered the keynote address about the exciting prospects in the local market, whilst an in­depth workshop on digital marketing for Filipino real estate professionals was given by John W. Mims, chief connector and managing director of The Hunting Ridge Group. Other thought­provoking discussions covered the rise of branded residences, the crucial issue of infrastructure problems, the future of green building and the impact of technology in the Philippine property sector.

SM Prime nets P18.4 B

Property giant SM Prime Holdings Inc. chalked up net profit of P18.4 billion in 2014, up 13 percent from the previous year on the back of strong growth of its retail operations owing to new mall openings and the expansion of existing ones.

In a disclosure to the Philippine Stock Exchange yesterday, SM Prime said consolidated revenues grew 11 percent to P66.2 billion with lease operations accounting for P36.5 billion or 55 percent of total.

Rental revenues from retail and commercial spaces represented a  13 percent increase from  the P32.2 billion recorded in 2013.

Same-store rental improved seven percent, sustaining the previous year’s growth pace.

“The encouraging financial performance in 2014 reiterates that the transformation of SM Prime into a property conglomerate is bearing fruits and trending above management expectations. We expect this performance to be surpassed this year as the company pursues its 2015 expansion plans with the opening of four new malls, the completion of FiveE-comCenter and the launch of five new housing projects. This is to complement the expansion of existing malls and on-going construction of high-rise residential development projects.” SM Prime president Hans T. Sy said.

Among the new malls that opened and underwent expansion were SM Aura Premier in Taguig, SM City BF Parañaque, Mega Fashion Hall in SM Megamall in Mandaluyong, SM City Cauayan in Isabela province and SM Center Angono in Rizal province, which provided additional  gross floor area of 564,000 square meters.

Growth was also partly attributed to TwoE- comCenter at the Mall of Asia complex which opened in 2012 and is now fully occupied.

Meanwhile, SM Prime’s housing group, which accounted for 33 percent of consolidated revenues, reported a seven percent rise in real estate sales to P22.2 billion, largely due to the increase in the pace of construction of sold units in Grace Residences in Taguig, Shell Residences in Pasay, Breeze Residences in Pasay, Green Residences in Manila, Grass Residences Phase 2 in Quezon City and Trees Residences in Quezon City.

Reservation sales jumped 36.5 percent to P35.9 billion, mostly coming from Shore Residences and Air Residences projects in Pasay and Makati, respectively.

SMDC Turns Over Towers in Makati, Mandaluyong

SM Development Corp. (SMDC), the residential development arm of property conglomerate SM Prime Holdings, Inc., has turned over more than 2,500 units in two condominium developments in Makati, and Mandaluyong.

As of end-June, SMDC started the turn over to customers their units in two project phases: 1,077 units of Tower C, Jazz Residences in Makati; and 1,460 units at Tower 3 of Light Residences in Mandaluyong.

“We are pleased to welcome the new residents of Jazz Residences, and Light Residences. We remain committed to bring conveniences and synergies from our retail, banking and property businesses at their doorstep,” SMDC President Jeffrey Lim said.

Jazz Residences is a four-tower “vertical village” at the heart of Bel-Air Makati that features five-star amenities. It also has its own mall – the Jazz Mall, complete with commercial and food establishments, and an SM Hypermarket, bringing the convenience of modern living to the community.

Meanwhile, Light Residences, a three-tower residential condominium, is strategically located along EDSA corner Madison St. and is conveniently linked to the Boni-EDSA MRT station.

The Light Mall, located at the first and second floors of the podium, will offer dining and entertainment areas. It will have three cinemas and a wide array of restaurants to choose from as well as a Savemore Market. The Light Mall is slated to open in the fourth quarter of 2014.

Jazz Residences and Light Residences are part of the 22 condominium brands of SMDC, the residential arm of SM Prime. Other projects are Sun Residences in Quezon City; Chateau Elysee Residences in Bicutan, Paranaque; Mezza Residences and Mezza II Residences on Aurora Boulevard, Quezon City; Berkeley Residences in Katipunan, Quezon City; Grass Residences; Fern at Grass Residences in Quezon City beside SM North EDSA; Sea Residences in the Mall of Asia Complex in Pasay; Field Residences in Sucat, Paranaque; Princeton Residences in New Manila, Quezon City; MPlace@South Triangle in Quezon City ; Blue Residences in Katipunan, Quezon City; Shine Residences in Pasig; Green Residences on Taft Avenue in Manila ; Shell Residences in the Mall of Asia Complex in Pasay; Grace Residences in Taguig; Breeze Residences in Pasay; Trees Residences in Novaliches, Quezon City; Shore Residences in the Mall of Asia Complex in Pasay and Wind Residences in Tagaytay.

Win 10 fully furnished SMDC condos in SM Supermalls shop and win promo

Ten  lucky shoppers will get to experience star-life condo living as the country’s largest chain of malls, launches its biggest and grandest promotion, the SM Supermalls Shop and Win an SMDC Condo Promo. The country’s largest shopping mall operator teamed-up with SM Development Corporation (SMDC), the leading real estate company in the Philippines, to give away 10 fully-furnished condominium units in prime locations.

To join, shop or dine for a minimum of P1,000 single or accumulated purchase in any of SM Supermalls 56 mall locations nationwide including SMDC Jazz and Sun Mall. Shoppers must present their receipt/s along with their E-Plus Loyalty card, SM Advantage card, SM Prestige card or BDO Rewards card for an e-raffle entry. Double e-raffle entries will be given with the use of the E-Plus Loyalty card.

Every month, two condominium units from SMDC’s prime properties will be given away. These are Field Residences, M Place South Triangle, Light Residences, Sun Residences, Princeton Residences, Blue Residences, Grass Residences, Sea Residences and Jazz Residences and an 80-square meter penthouse at Mezza Residences.

“SM will continue to provide not only affordable luxury and family fun mall experience but also a chance to experience the SMDC star-life condo living,”  said Steven Tan, senior vice president for operations of SM Supermalls said during the recent Shop and Win Promo launch.

The SM Supermalls Shop and Win Promo is ongoing until Nov. 22.

For information, visit Like and follow SM Supermalls on and on Twitter and Instagram (@smsupermalls) for regular updates.

SM Prime expands retail podium in condo projects

Integrated property firm SM Prime Holdings Inc. has expanded its retail portfolio to complement residential projects in the metropolis.

The mall operator and condominium developer said it started the commercial operations of its newest retail podium, Sun Mall, located at the Sun Residences tower in Quezon City.

“This is the third retail podium attached to an SM Development Corp. (SMDC) residential tower after Jazz Mall in Bel-Air, Makati and Mezza Strip in Quezon City,” SM Prime said.

Sun Mall spans a gross floor area of 15,000 square meters. It offers a variety of commercial and retail stores that can accommodate the basic household needs of its residents.

“The retail podium is designed to provide every patron with a worthwhile lifestyle experience,” SM Prime said.

“Through these retail podiums within our residential towers, we aim to provide our residents with access to everything that they will need,” said SM Prime executive vice-president and SMDC president Jeffrey Lim.

The opening of Sun Mall reflects the synergies at work in SM Prime, Lim said.

Anchor tenants include SM Hypermarket, Watsons and Banco De Oro, as well as food stores. Sun Mall also has specialty shops, giving residents a variety of options to choose from to satisfy their needs and provide convenience.

Food concepts in Sun Mall include The Happy Bakery, the first inline store of Happy Dizon of the Dizon family behind Dizon Farms; fastfood restaurant Chef Lau’s Pugon Roasters of chef Rolando Laudico; and Taiwanese milk tea brand Gong Cha.

Launched in 2009, Sun Residences is a two-tower, 43-story development that offers studio, one-bedroom and two-bedroom units priced between P1.8 million and P4.6 million.

Its amenities include a hotel-like lobby, a swimming pool, a clubhouse with multi-purpose hall, function rooms, a student’s lounge, children’s play area, barbeque area, and a landscaped garden with gazebos and a jogging path.

Located along España Blvd. corner Mayon St. in the Welcome Rotonda area, Sun Residences is positioned as a home for students along the university belt and for professionals working in and around the area.

Sun Residences is among 22 condominium brands by SMDC, the residential arm of SM Prime.

SMDC is launching seven new projects totaling 15,000 residential units this year, up from 12,000 units in 2013, while expanding its portfolio to economic and upscale housing.

SM Prime allotted P70.57 billion for its capital expenditures this year, of which 55 percent is for the shopping malls, 28 percent for the residential segment, and the balance for offices, hotels and convention centers.