What: SM Supermalls announces plans to open three new regional malls in Laoag, La Union, and Zamboanga by 2025, while simultaneously undertaking major renovations of existing properties, as part of its strategy to reach 100 locations by 2027.

Why it is important: This development underscores the continuing viability of shopping malls in Southeast Asia, particularly when operators balance new market penetration with the modernization of existing assets to meet changing consumer expectations.

SM Supermalls is embarking on an ambitious expansion plan with three confirmed mall openings planned for 2025 in Laoag, La Union, and Zamboanga. The company's president, Steven Tan, revealed that the Zamboanga location will feature a gross floor area larger than the existing SM Mindoro's 38,000 square meters. This expansion is part of a broader strategy to reach 100 malls by 2027, with additional openings planned for 2026 and 2027. Simultaneously, the company is investing in more than ten renovation and redevelopment projects, including significant upgrades to flagship properties. The Mall of Asia renovation is nearing completion, with plans to unveil a distinctive sky park featuring a FIFA-sized football field. The dual approach of new development and renovation of existing assets demonstrates SM's commitment to both market expansion and maintaining the relevance of its current portfolio.

IADS Notes: SM Supermalls' latest expansion announcement builds upon a year of strategic growth and portfolio optimisation throughout 2024. The company's plan to open three new malls in Laoag, La Union, and Zamboanga aligns with their successful regional expansion strategy, evidenced by their strong performance outside Metro Manila as reported in April 2024 . This regional focus is complemented by significant investments in existing assets, as demonstrated by the Mall of Asia renovation project. The approach mirrors the company's larger mixed-use development vision, exemplified by September 2024's announcement of the $2.6 billion SM Smart City project in Pasay City. The strategy of parallel expansion and renovation is proving successful, with March 2024 data showing plans for 440,000 square meters of new retail space, while the mall division reported a 9% increase in rental income by July 2024. This balanced approach to growth and asset enhancement positions SM Supermalls strongly in their pursuit of 100 locations by 2027.

SM to open three new malls next year, eyes 100 locations by 2027