The 2014 Best Developer (Philippines) winner is looking at its ASEAN neighbours for expansion opportunities
SM City Xiamen in China (image credit: Manila Bulletin)
Managing a total retail space of 7.3 million sqm, Manila-based property conglomerate SM Prime Holdings Inc seems to be casting its net even wider.
In a recent interview, SM Prime chairman Henry Sy Jr said his company is mulling expansion outside the Philippines and mainland China, where it currently has 56 and five shopping malls, respectively.
“We’re looking [for opportunities outside of the Philippines],” the supermall tycoon told Inside Retail. “[Our moves] will have to encompass the ASEAN region.”
More: Will ASEAN integration be a game-changer for the region’s property markets?
Jeffrey Lim, SM Prime executive vice-president, mentioned three countries in possible contention for an offshore expansion: Thailand, Laos, and Myanmar.
Lim conceded that a move outside the Philippines comes with barriers to entry. He noted that land prices in Myanmar are higher than Makati, the financial hub of the Philippine capital.
Thailand’s shopping mall scene is currently dominated by the Central Group and The Mall Group, whose portfolio includes CentralWorld and Siam Paragon, two of the world’s largest retail complexes.
“I think we just have to be disciplined,” Lim said. “We just have to wait and see first.”
SM Prime continues to be branching in the countryside. In November 2015, it opened the Philippines Property Award-winning SM Seaside Cebu City.
More: SM Group wins big at the Philippines Property Awards 2016
At 470,000 sqm, SM Seaside City Cebu now stands as one of the world’s biggest malls.
More recently, SM Prime has set its sights on reclaiming 1,500 hectares of land in the town of Cordova, 20 km away from city centre.
In April, the company signed a memorandum of understanding between the Cordova municipal government and the Philippine Reclamation Authority.
Cordova Mayor Adelino Sitoy told The Standard that the company will utilise the land for, among others, a shopping mall and a cruise ship wharf.
“Maybe an aquarium like one, like in Singapore,” the mayor said.
Source : property-report.com
Read more…Philippine mall chain SM Prime eyes Southeast Asian domination
