SM Land Inc. and Keppel Philippines Properties Inc. on Tuesday said they will embark on the second phase of the expansion of The Podium mall in Ortigas Center.
The two companies’ joint venture, SM Keppel Land Inc., said it will spend some $265 million, or about P11.8 billion, for the expansion of the property, which currently consists of a five-story retail mall and a 42-
story office building.
“The retail expansion will add over 34,000 square meters of retail space to The Podium, bringing the total leasable space to over 50,000 sq m when the expansion is completed in 2016,” the company said.
The new mall will also be five stories high and will have a six-level basement car park.
The expanded mall, which has a budget of $80 million, is expected to be completed by 2016.
On the other hand, the new 42-story office tower will be completed in 2019, and will offer a net leasable area of over 89,000 sq m of office space.
The new tower, which will have a development cost of about $155 million, will be located at the expanded mall.
SM Keppel is a joint venture among Banco de Oro, Unibank and Keppel Properties.
Keppel Properties, which mainly derives its income from management, advisory and consultancy fees, reported a net loss of P3.55 million for the first half of the year, from last year’s profit of P8.85 million.
For the second quarter alone, its revenues only reached P6.6 million, down by P2.9 million from last year.
With The Podium undergoing major renovation in its retail spaces, it resulted in lower occupancy and rental rates.
On the other hand, its general and administrative expenses grew by 31 percent to P5.5 million for the second quarter.