SM Group nearly ready to take over Harrison Plaza in Manila

1 min readUpdated Jul 24, 2019Aug 7, 201911:13 PM

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SM Group will assume ownership of Manila’s Harrison Plaza complex from the Martel family by next year, most likely refurbishing the seven-hectare property into a new mixed-used development.

“The plans are being reviewed,” said a source from the firm. “It might be mixed use, but definitely there will be a mall.”

“The area is a prime location and can be very well expanded into another sprawling mall with residential developments around it,” said SM Investments Corp chairman Jose Sio last year upon announcing the group’s plans to develop and manage the complex.

Harrison Plaza has been a highly recognisable fixture in the city since its construction in 1976, and is often referred to as the Philippines’ first modern shopping centre. The complex has, however, fallen into decline in the years since its renovation in the early 1980s. It currently has around 200 shops.

SM will buy out the plaza’s current owners from its contract with local government, which expires next year.

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What this means

SM Group's takeover of Harrison Plaza marks a decisive push to revitalise a prime, underperforming asset in Manila, using its proven expertise in large-scale mall developments. This strategy, consistent with its chairman's prior statements, pressures competitors to secure similar prime urban sites. While the investment in a mixed-use model mitigates risk by diversifying revenue streams, the challenge lies in successfully modernising a complex established in 1976 and integrating it smoothly into a dense urban fabric. This echoes other brands' urban expansions, like Tiffany & Co.'s Singapore opening, indicating a competitive race for prime, high-traffic locations. The success will hinge on the announced residential component's integration and the new mall's consumer appeal upon completion.

Minjun Park · Retail News Asia newsroom

Questions & Answers

What is SM Group's likely plan for the Harrison Plaza property once they take ownership?

SM Group will most likely refurbish the seven-hectare property into a new mixed-use development. A source from the firm confirmed that plans are under review, but there will definitely be a mall as part of the new complex.

When is SM Group expected to assume ownership of Harrison Plaza?

SM Group is set to assume ownership of the Harrison Plaza complex from the Martel family by next year. This coincides with the expiration of the current owners' contract with the local government.

What is the current state of Harrison Plaza before SM Group takes over?

Harrison Plaza has declined in the years since its renovation in the early 1980s. It currently houses approximately 200 shops, despite once being a highly recognisable fixture in Manila.

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