SM DEVELOPMENT Corp. (SMDC) is looking to expand its international footprint beyond China. The residential development arm of listed SM Prime Holdings, Inc. intends to enter more markets within Asia, its Executive Vice-President Jose Mari H. Banzon told reporters during a Dec. 12 interview.

“That is our marching order — to explore outside China and the Philippines,” Mr. Banzon said. “It’s still very preliminary so I really can’t say [where] but other Asian or ASEAN (Association of Southeast Asian Nations) countries.”

SMDC may consider partnering with the locals of the new market where it intends to expand into, just like other companies going overseas, Mr. Banzon noted.

“But in China, it was just us because we have six malls in China. So, we already know how to do business there. In other countries, most likely in partnership with locals but again, too soon to say,” Mr. Banzon said.

The company is looking at offering the same residential product in its prospective market outside the Philippines and China.

SMDC is focused on developing high-rise residential towers. In the last ten years, it has sold a total of 85,000 units in 28 developments located across the National Capital Region, including the Wind Residences in Tagaytay City.

“We just really have to have bigger markets. We’ve been very successful here [so] we want to do the same in other countries with the same demographics and profile — buyer profile,” Mr. Banzon noted.

In China, the company is scheduled to start pre-selling a condominium complex in Chengdu within the second quarter. Under Chinese regulations, it cannot start offering the project until construction progresses above ground.

The development spans two hectares near the shopping mall opened by the group of the Philippines’ wealthiest man, Henry Sy, Sr., in Chengdu in October 2006. SMDC targets to complete the first two of seven residential towers by 2019, Mr. Banzon said.

Aside from expanding abroad, SMDC is moving to the “economic” segment of the housing market, particularly outside the National Capital Region. The company expects to launch its first economic housing project in central Luzon this year.

In the first nine months of 2017, SM Prime sourced 32% of its consolidated revenues from SMDC. The contribution of the residential business then surged 10% to P18.7 billion from P16.9 billion.

SM Prime attributed the improvement largely to the sale of ready-for-occupancy units in Princeton Residences, M Place Residences, Mezza II Residences and Jazz Residences in the cities of Quezon and Makati, among other projects.

SMDC also recorded a 22% surge in reservation sales to P35.5 billion from P29.1 billion during the nine-month period. This reflected the strong take-up of projects within and near the Mall of Asia complex in Pasay City with sales volume rising 20% to 12,579 units from 10,520 units.

Shares in SM Prime closed flat at P28.35 apiece on the Philippine Stock Exchange on Dec. 29, the last trading session for 2016.