SM Prime Holdings, Philippines property developer, has plans to acquire shopping malls in China and is all set to buy more land for expansion.
According to Hans Sy, Head, SM Prime executive committee, the brand is still looking for options, but has shown interests only in the Fujian province.As per him, the group is assessing different areas that could offer value for money. All because of “phenomenal development” in the past 10 years, the value of land has risen in China.
Even while there are malls up for sale, SM Prime is being careful about possible acquisitions. Sy Says, “I’m being choosy as I only want within Fujian province.”
Fujian is the home province of his father, Henry Sy, the richest man in Philippines, who built his retail empire from a small shoe store in Manila.
SM’s malls in China include Chengdu (166,665 sqm), Chongqing (149,429 sqm), Jinjiang (167,830 sqm), Suzhou (72,552 sqm), Xiamen (238,125 sqm) and Zibo (150,600 sqm) for a total gross floor area of 945,200 sqm. The company’s mall in Tianjin, which partially opened this year, has a gross floor area of 540,000 sqm.
In all, SM is targeting to further expand its mall network in the Philippines and China to 10.6 million square meters of gross floor area by 2018, according to documents presented in a briefing by SM Investments. This would be an extra 28 per cent from the 8.3 million gross floor area the company hit last year.
As per sources, of the target, 85 per cent would be accounted for by malls in Philippines, while 15 per cent would be in China.