SM Prime Holdings Inc., the property vehicle of the Sy group, is expected to underspend this year due to the absence of acquisitions in China.
Acquisitions in China are programmed in its P65-billion budget for 2015, Jeffrey Lim, senior vice president of SM Prime, said on Thursday
“I think one of the causes is China. We haven’t actually acquired anything this year,” Lim said
Lim said the company continues to spend on its recurring business – malls and offices.
SM Prime is also set offer P20-billion worth of bonds, “hopefully in the first or second week of December.”
Lim said the bond issue will commence to take advantage of low interest rates. Proceeds of the bond sale will partly fund 2016’s capital expenditure program of P70 billion to P85 billion.
The debt notes will comprise a P15-billion base offer with an oversubscription option of P5 billion.
SM Prime, meanwhile, has opened three malls out of a targeted five for this year. Lim said the firm was still set to open SM Sangandaan early next month and SM Seaside Cebu on November 28.
In the first half, SM Prime saw profits rise 90 percent to 18.7 billion.
The firm is the Sy family’s real estate arm under SM Investments Corp. The Sys also have business interests in banking (BDO Unibank Inc.) and retail (SM Retail Inc.), among other ventures.