ANS  SY

The SM group will resume its plans to develop residential condominiums in China with the consolidation of all of its real estate businesses under SM Prime Holdings Inc.

“With the consolidated group, we can really go to China for residential already. Because before it’s only malls,” said SM Prime Holdings President Hans Sy said.

He noted that there were some regulatory requirements for SM Development Corporation to enter China as a residential developer but this should not be a problem now since this will now be pursued under SM Prime which has already broken into the Chinese market.

Sy said they will be using the same Philippine strategy of developing residential projects beside SM malls in China. “Something similar to the Philippines. We believe the Philippine formula works very well in China. It’s very different but it works very well,” he said.

He explained that their strategy will work because “we’re more customer oriented. We understand the users.”

Sy said the plan to pursue residential and other projects in China is part of the company’s medium term plan. “I made an announcement that towards the end of the year or early next year we will roll our five-year program,” he said.

He said they will continue to invest in China since the Chinese economy remains strong. “China, the whole economy may have slowed down but their slow down is still seven percent, I don’t know if you call that slowdown,” Sy noted.

Sy said the economy may not be as strong in first tier cities but, he pointed out, second tier cities that have been targeted by SM continue to post rapid growth. He cited Chengdu which is still registering double digit growth.

Meanwhile, Sy said their plans for China will include projects such as a lifestyle city similar to its Mall of Asia complex. “It has to be a lifestyle [city] ano because we have to also pre-empt the issues of E Commerce and all those things. It will be a lifestyle, to see and to be seen,” he said.