AN EXECUTIVE of SM Investments Corporation said by the middle of year 2017, the company will be opening its second premier mall in Mindanao, CDO 2 Premier mall, at CM Recto Avenue, Cagayan de Oro City.
Corazon Guidote, senior vice president of the SM Investors Corporation, said the newest mall in Mindanao is classified as a premier mall like that of the SM Lanang Premier of Davao City.
She said a Premier mall is superior to that of the other malls owned and operated by the SM Corporation in that it will not only be expected to cater the common consumer but will also be the hub of affluent buyers in Northern Mindanao.
"We are confident in choosing CDO as the next site for our Premier mall here in Mindanao because as everybody can see, it is the economic and cultural hub of investments, business, and opportunities in Northern Mindanao," Guidote said.
The Premier mall in Cagayan de Oro will have six floors and will have a gross floor area of about 174,399 square meters.
It will bring into the city more tenants and international brands than the other SM malls.
The Premier mall is expected to generate some 1000-1500 jobs for the Kagay-anons.
For the next two years, the SM Investments Corporation will also open their small food business format which it calls the Alpha Mart.
This small format food business is similar to a convenience store and sari-sari store.
"The Alpha Mart is now actually available in Luzon but is still being studied for construction and investment here in Mindanao and the Visayas regions. We are very optimistic though that this will also prove effective in the communities here in VisMin," said Tim Daniels, a consultant for the SM Investments Corporation.
Both executives said doing business in the Visayas and Mindanao has a lot of prospects owing to the robust growth as shown in the most recent data where the two regions contributed 26.9 percent to total Gross Domestic Product (GDP) in 2014.
Visayas and Mindanao likewise compared well with Metro Manila’s as GDP per capita increased by 2.4 percent in Visayas and 5 percent in Mindanao last year.
"VizMin is a new growth region for SM where significant opportunities await investors. Its underserved markets are hungry for the kind of aspirational products and services that SM tends to bring into its development," Guidote said.
SM has earmarked between P70 to P80 billion every year in an aggressive expansion bid in the Philippines, fueled by the local economy’s strong momentum.
As a result of this capital commitment, SM further expanded its bottomline by 11 percent to P15 billion in consolidated net income in the first half of the year.
Guidote said the corporation is committed to expand outside of Metro Manila where there remained a huge potential for growth.