Filipino Firm SM Prime Holdings To Raise $1 Billion By Listing Its REIT Assets

SM Prime Holdings Inc of the Philippines is planning to raise roughly $1 billion this year by listing its real estate investment trust (REIT) business, according to its president on Tuesday, in what may be the country's largest ever REIT listing.

The initial public offering (IPO) of SM Prime, a mall and office developer, would compete with the IPO of Philippine food company Monde Nissin Corp in 2021, which offered 48.6 billion pesos in shares.

According to SM Prime President Jeffrey Lim, the company plans to begin its IPO process in the second half of this year, depending on market conditions.

According to Lim, assets under SM Prime's REIT arm will include 12 to 15 of the company's 82 shopping malls in the Philippines.

SM Prime is the Philippines' last major property developer without a REIT unit listed on the stock exchange.

REITs, which manage profit-generating real estate assets such as hotels, office buildings, and shopping malls, are appealing to dividend-seeking investors.

SM Prime Holdings is a public subsidiary of SM Investments Corporation and a Filipino integrated property developer. It was formed on January 6, 1994, with the purpose of developing, conducting, operating, and maintaining the SM commercial shopping centres and all operations associated to them, such as the leasing of commercial spaces within the shopping centre compound. It went public on July 5, 1994, and grew to become the most profitable firm listed on the Philippine Stock Exchange. The company's primary revenue streams are rental money from malls and food courts, as well as cinema ticket sales and amusement profits.