SM Prime bets big on Cebu with new arena, 60,000-sqm office expansion

MANILA, Philippines – SM Prime Holdings, Incorporated (SMPH) is betting big on Cebu in 2026 with a P1-billion expansion of its office spaces and the opening of the SM Seaside Cebu Arena in June.

Located in SMPH’s South Coast City estate, the SM Seaside Cebu Arena is set to have a total gross area of 1.6 hectares and can accommodate over 25,000 guests at full capacity. This will make the newest arena bigger than SM’s Mall of Asia Arena in Pasay City, which can accommodate 20,000 attendees.

SM Seaside Cebu Arena will also house corporate suits, VIP lounges, as well as professional-grade sports and entertainment systems. A SkyBridge will link the arena to SM Convention Center Cebu and SM Seaside City Cebu.

In a press briefing on Monday, February 16, SMPH president Jeffrey Lim said that the SM Seaside Cebu Arena is already in talks with concert promoters and other event organizers to book the venue. Lim added that a local act may be the first to perform in the new arena.

According to Lim, the new arena will allow participants from the Visayas and Mindanao to attend large-scale events without needing to fly to Manila.

“Given that Cebu is accessible also from countries like Hong Kong, Singapore, Korea, Vietnam, Japan…. So fans from these countries who want to watch the concerts or the foreign artists in our SM Seaside Cebu Arena can fly in directly without passing through Manila,” he explained.

Lim also underscored SMPH’s faith in Cebu’s potential, saying that the company has invested the most in Cebu after Manila. South Coast City also sits at the center of this investment strategy, and the company plans to add more hotels in the estate.

Office space expansion

Aside from the new arena, SMPH’s office leasing arm also plans to spend around P1 billion to add 60,000 square meters of leasable space in Cebu City through SM City Cebu Towers along A. Soriano Avenue in the North Reclamation Area.

SMPH aims to complete the expansion by the fourth quarter of 2026. It is targeting to house “traditional” corporations and business process outsourcing (BPO) firms.

SM Offices vice president and head Alexis Ortega noted that demand for office space in Cebu remains healthy despite the fresh supply.

“We believe that it offers great value for its location and its integration with the SM City Cebu Mall and [National University] Cebu. This would give our tenants and their employees daily conveniences and accessibility that will not be easy to replicate,” he said.

SMPH posted a net income of P48.8 billion in 2025, 7% higher than the previous year, thanks to stronger topline contributions from its malls and what it described as “disciplined cost management.” – Rappler.com