LISTED property developer SM Prime Holdings, Inc. (SMPH) will open its new mall in La Union on Oct. 17, expanding its portfolio to 89 malls nationwide as part of its ongoing regional growth strategy.
“This is our ninth mall in Northern Luzon, and we designed it to serve as a landmark for both residents and tourists,” SM Prime President Jeffrey C. Lim said in a statement on Wednesday. “As the surfing capital of the region, La Union deserves a retail center that reflects its vibrant lifestyle and rich culture.”
The new SM City La Union, located along Diversion Road, Barangay Biday in San Fernando City, offers more than 51,000 square meters (sq.m.) of leasable space, with over 80% already taken up.
According to the company, the mall will house major tenants such as SM Store, SM Markets, Ace Hardware, Toy Kingdom, Levi’s, Watsons, Surplus, Pet Express, Adidas, Miniso, Sports Central, SM Appliance Center, Puma, Uniqlo, National Bookstore, and BDO.
A highlight of SM City La Union is the Sandbox, a 1,348-sq.m. outdoor area designed for sports tournaments, concerts, yoga, Zumba, and other community activities.
A bike lane running parallel to a manmade sandbar is also part of the development.
The mall will feature an SM Foodhall serving Ilocano, Filipino, and international dishes, and will introduce the province’s first Director’s Club cinema.
“With our diverse and unique offerings, we hope to strengthen La Union’s position as both a tourism and economic hub in Northern Luzon,” Mr. Lim said.
In 2024, La Union’s tourism industry generated over P1 billion in revenues, driven by higher visitor spending and longer average stays of 1.39 days from 1.33 days a year earlier, the company said.
The province recorded more than 500,000 tourist arrivals, with San Fernando City, San Juan, and Bauang ranking as its top destinations, it added.
Over the next five years, SM Prime plans to open a series of flagship malls, including SM Sta. Rosa in Nuvali by 2026, Harrison Plaza in Manila by 2027, SM Malolos in Bulacan by 2028, a Cavite mall by 2029, and another in Pasay by 2030.
Apart from new developments, the company is also pursuing redevelopment and expansion projects to reach its goal of 100 malls by 2027.
SM Supermalls, the retail arm of SM Prime, is among Southeast Asia’s largest mall developers.
SM Prime earlier reported a 10% increase in its second-quarter net income to P12.8 billion, bringing first-half earnings to P24.5 billion, up 11% from a year earlier. The growth was driven mainly by higher rental income, real estate sales, and ancillary revenues.
Consolidated revenues for the April-to-June period rose by 4% to P35.3 billion, while first-half revenues climbed by 5% to P68 billion from P64.7 billion a year ago.
Rental income from its malls, offices, hospitality, and MICE (meetings, incentives, conferences, and exhibitions) businesses accounted for 60% of total revenues, followed by real estate sales at 29%, and cinema, food and beverage, and amusement revenues at 11%.
Its mall business remained the main earnings contributor, accounting for 69% of total profit at P17 billion — up 14% year on year — supported by new openings, increased foot traffic, and strong occupancy rates.
On Wednesday, shares of SM Prime Holdings slipped by 0.87% or 20 centavos to close at P22.80 each. — A.G.C. Magno
