DAVAO CITY - SM Prime Holdings is slating expansion of its Mindanao business as it aims to post double digit growths in the revenues and profits of these malls annually.
In an interview, SM Prime assistant vice president for Mindanao operations Debbi Go said that, to support its growth target, SM Prime will build its fifth Mindanao mall in Butuan City and build a second mall in Cagayan de Oro City.
Go said Butuan has a sizeable population that is enough for an SM mall which will also serve the developing Caraga region. The Butuan mall will be a community mall with outdoor dining, and a sky garden.
For Cagayan de Oro, its second mall will be in the heart of the city to serve the downtown area while the existing mall serves high end subdivisions in the suburbs.
She said the Butuan mall will be slated for opening in 2014 and the second Cagayan de Oro mall will open in late 2014 or early 2015 adding that these projects are still in the designing stage.
''The Mindanao region contributes 4 to 5 percent to the total SM Prime revenues and income. All the regions have the same target,'' said Go adding that while they want to grow Mindanao's share in the firm's earnings, this is difficult since other regions are also on expansion mode.
SM Prime currently has a total gross leasable area of 430,000 square meters in its four malls consisting of SM City Davao, SM City Cagayan de Oro, SM City General Santos, and the latest addition, SM Lanang Premier which is also in Davao City.
About 80 percent of its revenues and earnings come from the two malls in Davao, said Go.
The first SM mall in Mindanao, SM City Davao is a community mall that houses some of the best specialty stores and public service facilities. It is Davao City's hippest cyberhub and is poised to become the metro's BPO center with the addition of two floors of BPO space in its new annex.
The first premier mall in Mindanao and the 46th SM mall nationwide, SM Lanang Premier is the region's newly opened world-class shopping complex, lifestyle hub, and key entertainment and convention destination.
It features a modern structure, upscale retail mix, diverse dining options, larger than life attractions, and first-class convention facilities.
SM's second mall in Mindanao, SM City Cagayan de Oro is an Uptown mall that occupies a total land area of 5.2 hectares with 36,430 square meters dedicated to specialty stores, retail boutiques and dining establishments.
Situated in the heart of the city of Gensan, SM City General Santos is close to 600,000 shoppers and exclusively presents a complete malling experience by offering a wide variety of products and services in a comfortable ambiance.