SM Investments set P65B capex for '13
November 8, 2012 11:12 pm
MANILA, Nov. 8 — Sy-led SM Investments Corp. has set a P65 billion capital expenditures for 2013, up from the P56 billion for 2012.
“One third of the capital will be raised through equity while two-thirds will be internally funded,” SM Investents Corp. Chief Financial Officer Jose Sio told reporters Thursday.
The SM group has lined up several project for next year and among these are the opening of new malls, hypermarkets and residential buildings.
Specifically, SM Prime Holdings, which operates the group’s malls, has set a P30 billion capital expenditure budget for next year.
“P12-15 billion of this will be in debt because interest rate environment is very low,” SM EVP Jeffrey Lim said.
The SM Prime executive said they are looking at issuing both peso denominated and dollar denominated debt but declined to elaborate.
Relatively, SM is set to open by next year a mall in Cauayan, Isabela and Taguig.
To date, SM Prime operates 50 malls, 46 in the Philipines and four in China namely Xiamen, Jinjiang, Chengdu, and Suzhou.
Lim said they will open another branch in China this December.
SM plans to open one mall in China annually but since there will be no new mall to be opened in 2013, two will be opened in 2014.
In the first three quarters this year, SM Investments registed a 14 percent rise in profits on back of the banks, malls and retial operations business.
The company’s net income in the first nine months of 2012 rose to P16.1 bllion over year-ago’s P14.2 billion.
This, after revenues went up by 13 percent year-on-year to P157.9 billion against year-ago’s P139.2 billion as of end-September 2011. (PNA)