SM Prime Holdings

Infobox Company
name = SM Prime Holdings
company_
type = Public
foundation = flagicon|PHL Manila, Philippines (1958)
location = flagicon|PHL Pasay City, Philippines
locations = 29 malls as of September, 2007, with 14 proposed or under construction
key_people = Henry Sy, Sr. (Founder, Chairman and CEO)
area_served = Philippines
Xiamen, China
Guam
industry = Retail
slogan = "We've got it all for you!"
homepage = [http://www.smprime.com smprime.com]

SM Prime Holdings, Inc (Pse|SMPH) is the parent company of the SM Group's shopping malls. It is the largest shopping mall and retail operator in the Philippines. It was incorporated on 6 January 1994 by Filipino-Chinese entrepreneur Henry Sy to develop, conduct, operate and maintain the SM commercial shopping centers and all businesses related thereto, such as the lease of commercial spaces within the compound of shopping centers. It later went public on 5 July 1994 and subsequently grew to become the largest company listed on the Philippine Stock Exchange in terms of revenue.

The Company's main sources of revenues include rental income from mall and food courts, cinema ticket sales and amusement income from bowling and ice-skating.

Currently, it has 30 operating malls totaling a gross floor area of 2.7 million square meters located in Metropolitan Manila, Cavite, Bulacan, Pampanga, Baguio City, Angeles City, Cebu City, Iloilo City, Bacolod City, Davao City and Cagayan de Oro City.

On 2 April 2008, SM Investments Corp. (the parent company to SM Prime) announced that it would participate in a $1-billion casino project in Manila. The 40-hectare Bagong Nayong Pilipino-Manila Bay Integrated tourism project consists of a casino, hotels, shopping malls and other entertainment facilities. [ [http://business.inquirer.net/money/breakingnews/view/20080403-128081/SM-joins-1B-casino-project Inquirer.net, SM joins $1B casino project, Alliance gains on Star Cruises tie-up]

SMPH currently operates three malls in the southern and western parts of China, namely, Xiamen, Jinjiang and Chengdu. The mall in Xiamen was the first to open in December 2001. It has a gross floor area (GFA) of 128,000 sq m, almost similar in size to SM City Sta. Mesa and is 100-percent occupied. SM Jinjiang opened in November 2005 with a GFA of 170,000 sq m and occupancy of 74 percent. Opened last year was SM Chengdu with a GFA of 170,000 sq m and an occupancy rate of 71 percent.

Another mall is up for construction in the third quarter and would be situated in Chongqing, southwest China’s commercial capital. SMPH is spending P1 billion to build the said mall. It will have a gross floor area of 140,000 sq m and is up for completion by 2010.]

History

The roots of SM date back to the 1950s when entrepreneur Henry Sy established a shoe store in Binondo, the then-central business district of Manila. His aggressive and adamant strategy helped him gain large profits within a few years and he later expanded his business in Quiapo to become a fully functioning department store named "Shoemart", specialising in the sale of shoes, the sector of which the store originally was. Shoemart was later abbreviated to "SM" and became commonly known as "SM Shoemart" by the locals. The SM in Binondo was later abandoned and moved in the present site in Quiapo near the Manila LRT Yellow Line. The old site was demolished in 1982.

The first SM Supermall, SM City North EDSA, was opened in 1985 and started the Philippine "malling" phenomenonFact|date=February 2007. Sy observed the malling hobby of Filipinos and opted to make every SM Supermall like an amusement park. The all SM Supermalls have at least one or more amusement facilities, such as cinemas, bowling alleys, convention centers and games arcades.

Located in several cities and areas in Metro Manila, as well as major provincial cities, each SM is easily accessible and situated by places of public interest (churches, schools, major roads and highways, etc). SM opened its first department store outside Metro Manila (SM Delgado) in Iloilo City in 1979 was renovated in 2004 and is currently under expansion.

The first ice skating rink in the Philippines was opened in SM Megamall in 1991. With this first, SM introduced Filipinos to an art-sport otherwise unpopular in tropical countries. The SM Supermalls also house 146 cinemas (with over 103,708 total seating capacity), making SM Prime Holdings, Inc. the largest cinema operator in the country.

As of 2006, SM Prime Holdings, Inc. is embarking on an aggressive expansion program within the next five years. In preparation for this expansion, SM Prime Holdings, Inc. has amassed a total landbank of 96.6 hectares in 10 strategic locations. Included are attractive properties in provinces where urbanization is steadily underway, such as Cabanatuan, Pangasinan and Bulacan.

By 2006, five additional SM Supermalls will be operational, including the Mall of Asia which has opened recently. This is SM Prime Holdings, Inc.’s most expensive project to date.

In 2008, 5 new malls will be opened: SM Marikina, SM Baliuag (Bulacan), SM Rosales (Pangasinan), SM Nagtahan (Manila), and SM Vito Cruz (Manila). [ [http://siva-sg.jobstreet.com/_profile/previewProfile.asp?advertiser_id=9377 Shopping Center Management Corporation (SM Supermalls) ] ]

The SM Group has engaged in other retail endeavors through other SM- related companies such as, among others: Watsons Personal Care Stores, Inc., a joint-venture with Hutchison-Whampoa Ltd. of Hong Kong; International Toy World (Toy Kingdom); Ace Hardware Philippines, a joint-venture with Ace Hardware Corporation USA; Star Appliance Center; Surplus Shop; Sports Central; Baby & Co.; Home World; and Our Home. The amusement center is SM Storyland by Alexis Cerado.

Financial performance

SMPH posted an 8.6% increase in net income to P4.62 billion from P4.26 billion. This is due to a healthy increase in gross revenues, by 15.99% to P10.21 billion from P8.80 billion. Rental income, which contributed 80.14% of the Company's revenues, rose by 17.18% to P8.18 billion from P6.98 billion. This was due to rentals from three additional SM Supermalls opened in the last quarter of 2003, namely, SM City Lucena, SM City Baguio and SM City Marilao and the opening of SM City Dasmarinas and SM City Batangas in 2004. On the other hand cinema ticket sales increased by 11.26% to P1.50 billion from P1.34 billion. Other sources of revenue grew 12.01% to P532.52 million from P475.43 million. Fact|date=October 2007.

Malls

SM Supermalls

Branches in China

*SM City Xiamen
*SM City Jinjiang
*SM City Chengdu
*SM City Chongqing

Branch in Guam

*SM Guam
**42,000 sq ft. Opened 2006 in the Agana Shopping Center in Hagatna, which SM also bought and repaired after it was severely damaged by Typhoon Pongsona. It is the first SM store on US territorial soil since a previous attempt in the 1970s—before SM had grown into a retail giant.

tandalone Appliance Centers

pecialty shopping malls

*The Podium - ADB Avenue, Ortigas Center, Mandaluyong City

tandalone department stores

The SM Group's standalone department stores are not within the listed entity of SM Prime, but are in the parent to SM Prime, namely SM Investment (SM.PH).

tandalone supermarkets

The SM Group's standalone supermarkets are not within the listed entity of SM Prime, but are in the parent to SM Prime, namely SM Investment (SM.PH).

External links

* [http://www.smprime.com/ SM Prime Holdings]

References