XIAMEN CITY, China — SM Prime Holdings, Inc. is expanding its first mall in China with a brand new P1.5-billion retail development because it narrows its China expansion technique to Fujian province, where it said the corporate has established strong brand recognition.
The property developer will launch the 19,403-square-meter (sq.m.) CHAO Block at SM Xiamen City, its first overseas development, because it continues to speculate within the province while taking a more conservative approach to its China expansion.
“Moving forward, we’ll just deal with Fujian province,” SM Prime President Jeffrey C. Lim told reporters during a media roundtable on Friday.
Mr. Lim said the corporate stays open to opportunities proposed by local governments but intends to strengthen its presence in Fujian, where the SM brand is already well established.
“China is so big. Every province is nearly like a distinct country. The nice thing for us is that the SM name is extremely popular and quite known in Fujian,” he said.
Despite the renewed focus, Mr. Lim said the group’s China operations remain “not material” to SM Prime’s consolidated business, adding that the corporate has no immediate plans to spin off its China assets until they reach greater scale.
CHAO Block is envisioned as a “neo-urban block” that extends beyond the normal mall format by bringing together independent founders, local entrepreneurs, cultural curators, and first-to-market concepts.
The P1.5-billion project shall be accomplished in phases, with the primary phase scheduled to open in September and the second phase targeted for completion within the fourth quarter of 2027.
Tenants may even be encouraged to host workshops, product launches, exhibitions, community events, and brand collaborations.
“SM Xiamen City holds a definite place in our company’s history. Being our first overseas investment, it has served as a long-term platform for learning, expansion and growth in China,” Mr. Lim said.
“As Xiamen continues to develop, we intend to maintain strengthening the property and the local entrepreneurs so it stays a very important a part of the town’s business landscape,” he added.
Established in 2001, SM Xiamen City was developed as a one-stop shopping destination for the mainstream consumer market.
In 2009, the property expanded by 109,922 sq.m. of gross floor area (GFA) as a part of its repositioning into an upscale lifestyle shopping mall. In 2022, it added one other 129,195 sq.m. of GFA and refreshed its tenant mix to cater to younger consumers and growing demand for social and experiential spaces.
Today, SM Xiamen City houses greater than 500 stores, including international brands akin to Apple Store, Sephora, Maison Le Fame, and Lululemon, in addition to a Walmart and a variety of restaurants and cafés.
Mr. Lim said the corporate also plans to use lessons from SM Xiamen City’s evolution to its Philippine developments by introducing more experiential retail concepts.
Within the Philippines, SM Prime, through SM Development Corp. (SMDC), is shifting its residential focus toward provincial economic housing to deal with what Mr. Lim estimated to be a national housing backlog of greater than six million units.
The corporate is targeting the “non-vattable” P3.6-million price point for buyers in Davao, Iloilo, Mabalacat, Pampanga, and Trece Martires, Cavite.
While Metro Manila properties proceed to face challenges, SM Prime plans to sell its existing inventory within the capital while expanding its recurring income business and provincial footprint. The corporate expects to provide about 25,000 homes annually.
Individually, Mr. Lim said sand placement for SM Prime’s Manila Bay reclamation project has been accomplished, with work now focused on shoreline protection, including armor rocks and revetment.
“Our commitment to the federal government is to show it over mid-2028,” he said, adding that land development, including roads and utilities, is predicted to be accomplished between 2026 and early 2027.
The corporate can also be studying temporary uses for portions of the reclaimed land, particularly the island facing SM Mall of Asia. Interim developments, which can remain in place for five to 10 years, could include sports complexes to be operated by third-party partners fairly than SM Prime. — Juliana Chloe A. Gonzales