MANILA, Philippines—The SM Group is investing about P2 billion for the redevelopment of SM City North Edsa, the first big retail property bet made by patriarch Henry Sy 25 years ago that is now being transformed from its traditional big box motif into a more trendy complex with an al fresco roofdeck garden devoted to new retail, dining and entertainment outlets.

This developed as SM Prime Holdings formally opened on Monday to the public its Sky Garden, an elevated curvilinear park with a 400-meter canopied walkway cutting across manicured lawns, ponds, trees, about 33 new retail outlets and a performance area called Sky Dome with a capacity of about 1,500 people.

The Sky Garden is the latest in a series of SM City North Edsa redevelopment, following the renovation of SM Annex and the opening of The Block.

The next phase will involve the redevelopment of the main building, which should be completed by the first quarter of 2010, SMPH president Hans Sy said.

SM City North Edsa, which now has a gross leasable area of 445,000 square meters including the Sky Garden and SM Annex redevelopment, enjoys an occupancy rate of 98 percent. It contributes about 12-13 percent of the total revenues of the entire mall chain operated by SMPH.

Of the P2-billion total cost for the SM City North Edsa redevelopment, Sky Garden alone cost about P600 million. The park provides the much needed greenery not only for the mall but for the city. It also serves as a buffer from the busy Edsa intersection and serves as a living, organic link between the different components of The Block, the SM City center and The Annex.

The redevelopment is seen to make SM City North Edsa more competitive especially with a new competitor in the vicinity, the Ayalas’ TriNoma.