Philippines' SM Prime Holdings Inc plans to raise $1 billion through REIT IPO

Last week, the president of SM Prime Holdings Inc announced that the company is considering raising approximately $1 billion through the listing of its real estate investment trust (REIT) unit later this year. If successful, this IPO would be the largest of its kind in the Philippines. SM Prime is a developer of commercial properties such as malls and offices, and its IPO would compete with the record-breaking IPO of Monde Nissin Corp, a Philippine food manufacturer, which raised 48.6 billion pesos through its IPO in 2021.

During a press conference, SM Prime President Jeffrey Lim stated that the company is aiming to commence its initial public offering (IPO) process in the latter half of this year, with the caveat that it will depend on market conditions. According to Lim, the assets held by SM Prime’s real estate investment trust (REIT) arm will consist of 12 to 15 out of the firm’s 82 shopping malls situated across the Philippines. SM Prime is the final prominent real estate developer in the Philippines without a REIT division listed on the stock exchange.

Investors who are interested in receiving consistent dividends may find REITs appealing, as these entities manage profitable real estate assets such as hotels, office buildings, and malls.

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Philippines' SM Prime Holdings Inc plans to raise $1 billion through REIT IPO

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