SM Prime Holdings, Inc. is an integrated property developer and a subsidiary of SM Investments Corporation. It was incorporated on 6 January 1994 to develop, conduct, operate and maintain the SM commercial shopping centers and all businesses related thereto, such as the lease of commercial spaces within the compound of shopping centers. It went public on July 5, 1994, and subsequently grew to become the largest company listed on the Philippine Stock Exchange in terms of revenue. The company's main sources of revenues primarily include rental income from mall and food courts, as well as from cinema ticket sales and amusement income.
History
The roots of SM date back to the 1950s when entrepreneur Henry Sy, Sr. established a shoe store at Carriedo Street in Quiapo, Manila. His store was established as ShoeMart, which was originally located at Carlos Palanca Sr. Street. His aggressive and adamant strategy helped him gain large profits within a few years and he later expanded his business to become a fully functioning department store named ShoeMart, which specializes in the sale of shoes, the sector of which the store originally was. ShoeMart was abbreviated into SM, the name which became commonly known by the locals. The abbreviation SM has become an orphan initialism. The first ShoeMart outlet was abandoned and the department store moved to a new site along the nearby Carriedo Street. The old site was demolished in 1982 and was turned into its Clearance Outlet. The first SM Mall, the SM City North EDSA, was opened in 1985. Followed by the establishment of a second mall, the SM Centerpoint, in 1990. Since then, the company has expanded by establishing malls nationwide. On May 17, 2013, SM opened the SM Aura Premier. The same year, the company announced a merger with SM Land, which owns SM Development and Commercial Properties Group. As a result, upon approval by Securities and Exchange Commission, SM Prime is one of the largest property companies in the Southeast Asia region, competing with Gokongwei-led Robinsons Land.
SM Supermalls is a chain of shopping malls with over 60 malls in the Philippines, and seven in China. According to the company, the malls attract an average foot traffic of 3.5 million daily and has over 5,000 tenant partners.
SM Development Corporation is a wholly owned subsidiary and the real estate arm of SMPH. The company was constantly being criticized for having too small unit cuts, which can be as small as 15 square meters, and the delays of giving out titles to unit owners. Cost-cutting measures were done to maximize profits from its residential projects.
Lawsuits
SM Prime and BDO was sued for fraud and tax evasion by the Cebu city government, led by Mayor Tomas Osmeña, because SM Prime grossly misrepresented the total area size of SM Seaside City Cebu to reduce its tax declarations.
