SM Prime Holdings Inc. is investing billions of pesos to expand malls in Iloilo, Batangas and Naga, adding a combined 70,000 square meters of gross floor area as the company seeks to capture continued retail demand outside the National Capital Region (NCR).
The planned expansion of SM City Iloilo North Block, SM City Sto. Tomas, and SM City Naga are set to add retail, dining, entertainment and commercial spaces beginning in the fourth quarter of 2026, SM Prime said on Wednesday.
SM Supermalls head Steven Tan said occupancy, business activity and tenant demand were assessed before proceeding with the mall expansions.
“We have a matrix on how to look at it. There's occupancy matrix, the business activity within that area, and also the appetite of our tenants to expand,” he said during a briefing.
“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."
Tan said the three malls were more than 95 percent occupied and had waiting lists for additional spaces.
“These are all very mature areas that are ready for expansion already,” he said.
The projects will require about P1.7 billion in capital expenditure for the Iloilo expansion and around P1.2 billion each for SM City Sto. Tomas and SM City Naga.
The largest project is the SM City Iloilo North Block, which will add around 35,000 square meters of gross floor area as part of a mixed-use development.
The expansion will include covered multi-level parking and new ground-floor spaces for essential services, medical and wellness services, specialty stores, a convenience store and cafes. It will also house a National University campus.
The addition of offices and the university is expected to strengthen weekday activity at the mall, complementing its typically stronger traffic on Fridays, Saturdays and Sundays.
“What we're doing right now is a whole ecosystem,” Tan said, noting that offices and schools could bring customers to the mall during lunch breaks and after work hours.
In Batangas, SM City Sto. Tomas will add more than 26,000 square meters through the construction of a third level. The expansion will feature amusement concepts, restaurants, wellness establishments and retail stores, a dedicated trade hall, co-working and meeting spaces, as well as additional surface parking.
Meanwhile, SM City Naga will undergo a two-story expansion covering approximately 9,000 square meters. The project would add parking and extend the roof deck while redeveloping existing tenant areas.
Tan said the company considers infrastructure developments and local government unit (LGU) project pipelines when assessing the timing and viability of mall expansions.
“We're always aligning with not just our tenants but also [with] the LGU and the [Department of Public Works and Highways],” he said.
The three expansions will incorporate energy- and water-efficient systems, solar panels, electric vehicle charging stations and enhanced waste management facilities, in line with SM Prime's sustainability initiatives.
Tan said SM Supermalls had been implementing sustainability measures for decades, including water recycling and the use of solar panels.
The company has 90 shopping centers in its portfolio and is targeting to have EV charging stations in around 70 to 80 malls by the end of 2026.
“Definitely, our provincial malls are also in the pipeline. It's not just for Luzon or Metro Manila, but it is across the country,” Tan said.
SM Prime President Jeffrey Lim said Iloilo, Sto. Tomas and Naga were major economic hubs with strong potentials to attract more businesses and investment.
“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,” Lim said.
Shares of the company on Wednesday closed unchanged at P18.10 each.