BIGGER TARGET. Sy-led SM Group wants to be a regional real estate powerhouse. Photo taken during the May 31 press briefing of SM Investments Corp with brothers Hans Sy (2nd from left) and Henry Jr. (3rd from left) by Lean Santos/Rappler

MANILA, Philippines – From a modest shoe store in Quiapo, SM, the company that the Philippines’ richest man founded in 1946, now wants to expand its footprint.

In a media briefing on Friday, May 31, Henry Sy Sr’s son and namesake said the business group’s property and mall units will be folded into one to create not just the biggest real estate company in the Philippines but also a regional real estate powerhouse.

“We believe there is a regional clamor for the type of development (that SM offers) as there is demand for a holistic and sustainable environment consequently providing much improved lifestyle to our clients,” Henry Sy Jr., vice chair of holding firm SM Investments Corp. (SMIC) vice chairman, said.

SMIC will consolidate units SM Land, residential developer SM Development Corp. (SMDC), luxury developer Highlands Prime Inc. and mall operator SM Prime Holdings within the year. SM Prime will be the surviving entity.

“This (merger) will allow SM Prime to become a fully integrated real estate platform that may well be positioned to further accelerate the (company’s) growth,” he said.

The SM group currently operates the widest chain of malls in the Philippines and have presence in China.

Template for growth

The SM group wants to use their existing mixed-use and integrated establishments as template for their future ventures.

“We view that there’s an increasing demand for such landmark projects that would address the needs of other sectors as we ride on the emergence of the Philippine economy,” Sy Jr. said.

He cited their fully-integrated SM Mall of Asia (MOA) project in Pasay City. The MOA complex, launched in 2007, includes a shopping mall, convention center, commercial buildings and, soon, a hotel.

“This template of mall, hotels, commercial, residential buildings and convention centers proves our commitment to a holistic environment…. This template can be replicated in many parts of the Philippines, China and the rest of the region.”

Currently, SM group has 47 malls in the Philippines and 5 more in China.