THE holding company of the SM group said it plans to build five more malls in the Philippines and one in China next year as it is poised to enter a new growth cycle led by the retail and property businesses. In a briefing, Cora Guidote, SM Investments Corp. (SMIC) vice president for investor relations, said the conglomerate will build new malls in Calamba, Laguna; Novaliches, Quezon City; Tarlac; Masinag in Antipolo City; and San Pablo, Laguna and one in China.

Upon completion, the group will have an additional 279,228 square meters in gross floor area, Guidote said.

SMIC currently has 35 five malls in the country and three in China.

To bankroll these plans, SMIC has earmarked P12.1 billion out of the total P40.6 billion it has set for its capital expenditure (capex) in 2010.

Of the total capex, P17.4 billion will be spent for the property unit’s 14 residential projects, Two E-com, Cyber buildings, PDL condominiums, lot development, ferry terminal and a causeway in Hamilo Coast.

The retail segment of the holding firm, meanwhile, will receive a budget of P6.2 billion to fund the opening of 25 stores and the hotel and entertainment unit will get P4.9 billion.

Jose Sio, SMIC executive vice president and chief finance, said SMIC would get 70 percent of its capex from internally generated funds, while the remainder will be sourced from “outside the group.”

“We will be opportunistic when it comes to borrowings [so] if somebody offers us a better rate, we’ll get it,” Sio said.

From January to September, SMIC’s net income grew 14 percent to P10.8 billion from P9.4 billion in the same period last year as revenues rose by 14 percent to P119.9 billion a year ago because of the strong performance of its retail and property businesses.

The retail stores’ net income reached P3.1 billion, up 37 percent from P2.2 billion a year ago, and accounted for 34 percent of the holding firm’s profit.

The mall and banking groups contributed 27 percent each and the remaining came from the real estate group, which rose 42 percent to P1.7 billion because of residential sales.

“SM’s nine-month results in 2009 affirm our growth track over the medium term, as it is achieved amidst a challenging global business climate,” Harley Sy, SMIC president said.

“SM’s core businesses namely malls, retail, banking, and property mirror the strengths of the Philippine economy amidst the global financial crisis,” Sy said.