SMIC spending up to P114b to expand property, retail businesses

SM INVESTMENTS Corp. (SMIC) of the Sy family said Wednesday it is spending between P110 billion and P115 billion this year primarily to support the expansion of its property and retail businesses.

SMIC senior vice president for finance Franklin Gomez said in a news briefing following the company’s annual stockholders meeting said the 2024 capital expenditures would be higher than P80 billion thje group spent in 2023.

Gomez said the group would allocate the bulk of this year’s spending for its property unit SM Prime Holdings Inc. at P100 billion.

The balance will go for the expansion of its retail unit which seeks to open 400 Alfamart stores, SM’s minimart grocery format, and 100 department stores, supermarkets and specialty stores this year.

SMIC’s banking arm BDO also continues to expand coverage nationwide as it intends to open 100 to 120 branches this year.

Most of the group’s expansion plans are also geared towards the provincial areas where growth is much faster compared to the National Capital Region.

Gomez said while headwinds in the market remain, the group continues to invest in its businesses, which still have significant room for growth.

SMIC is also investing in emerging sectors through projects such as its commitment to supporting clean energy sources.