SM Prime to Expand Three Malls Outside Metro Manila by 2026

SM Prime Holdings Inc. is poised to invest approximately P4.1 billion (around $72 million) in the expansion of three malls located in Iloilo, Batangas, and Naga, with the aim of adding a total of 70,000 square meters of gross floor area by the fourth quarter of 2026. This strategic move is designed to capture the growing retail demand outside the National Capital Region (NCR), as noted by company executives during a recent briefing.

The largest of the three projects, SM City Iloilo North Block, will contribute about 35,000 square meters to the total expansion. This mixed-use development will feature covered multi-level parking, new ground-floor retail spaces for essential services, medical and wellness facilities, specialty stores, a convenience store, and a café. Additionally, it will house a campus for the National University, which is expected to enhance weekday foot traffic alongside the typical weekend rush.

In Batangas, SM City Sto. Tomas will see an expansion of more than 26,000 square meters, introducing a third level that will accommodate amusement concepts, restaurants, wellness establishments, retail stores, and co-working spaces. Meanwhile, SM City Naga will undergo a two-story expansion covering approximately 9,000 square meters, which will include additional parking and improvements to existing tenant areas to enhance customer circulation.

“Through these mall expansions, we aim to support their continued growth by creating more opportunities for micro, small, and medium enterprises, generating local employment and contributing to stronger communities.”Jeffrey Lim, President of SM Prime

Steven Tan, head of SM Supermalls, emphasized that the decision to expand was based on a thorough assessment of occupancy rates, business activity, and tenant demand. He explained that the company has a matrix to evaluate these factors, including occupancy rates, business activity within the area, and tenant appetite for expansion. He noted that the three malls are currently over 95 percent occupied and have waiting lists for additional spaces.

SM Prime's President Jeffrey Lim highlighted the economic significance of these expansions, stating that the cities of Iloilo, Sto. Tomas, and Naga are major economic hubs in their respective regions, with strong potential to attract more businesses and investment. He mentioned that the expansions aim to support local growth by creating opportunities for micro, small, and medium enterprises (MSMEs), generating local employment, and contributing to stronger communities.

“We have more than 35,000 unique tenants with us, and oftentimes we meet with them, and they would always request; they would be the ones to tell us also that we need branches in this area.”Steven Tan, Head of SM Supermalls

In alignment with its sustainability initiatives, the expansions will incorporate energy- and water-efficient systems, solar panels, electric vehicle (EV) charging stations, and enhanced waste management facilities. Tan reiterated the company's commitment to sustainability, noting that SM Supermalls has been implementing such measures for decades, including water recycling and the use of solar panels.

The expansion plans come at a time when SM Prime reported a slight increase in consolidated net income for the second quarter, reaching P12.9 billion (approximately $228 million), up from P12.8 billion a year earlier. The company’s consolidated revenue rose to P38.4 billion ($681 million) during the same period.

As SM Prime continues to expand its footprint, the company is also looking to open three to four new malls in various locations, including General Trias, Cavite; Sta. Rosa, Laguna; Davao del Norte; and Zamboanga City, as part of its roadmap to deliver one flagship mall annually until 2030. This ambitious plan reflects SM Prime's strategy to evolve its mall network into future-ready spaces that serve as economic anchors in key regions.