SM Prime Holdings Inc. said the company is poised to hit 1 million square meters in office space in the next five years as it ramps up construction, according to David Rafael, senior vice president for commercial properties group.
Rafael said SM Prime will put up 100,000 sq.m. in new office space every year in addition to its current portfolio of over 500,000 sq.m.
“We want to continue growing at an average of about 20 percent a year. For the past two to three years, we’ve actually been growing more. (The commercial properties group has) been growing at a rate of 30 percent because of the new buildings so we want to sustain that growth rate,” Rafael said.
The commercial properties group contributes about 5 percent of group revenues.
Rafael said the company is keen on expanding its presence in Cebu where the SM Group is set to unveil its SM Seaside Cebu in the property formerly called South Road Property. The Group has cyber tower buildings in Makati, one in SM North EDSA, and the three E-com towers in Mall of Asia complex.
On Wednesday, the company formally unveiled the third tower, Five E-com, a 100,000-sq.m. BPO building.
Rafael said SM Prime is set to break ground on Three and Four E-com towers that are set to be completed in 2017 and 2019, respectively.
A total of six BPO buildings are set to rise in the Mall of Asia complex, each with a gross floor area of 100,000 sq.m., and built at a cost of between P4 billion to P5 billion each.
The existing buildings are fully-leased out with about 70 percent of occupants engaged in the BPO business.
Rafael, however, said the buildings also attract shipping companies as they look for alternative areas to that of Manila for their headquarters, yet close to the port.
Rafael also said the company is also looking at the possibility of developing into additional office space the other open areas in the property.
Malaya: In Five Years: SM sees 1M SQ.M. Office Space
Thursday, Nov 12, 2015