SM Prime Holdings Inc. remains confident of its venture in China, slowly building up its portfolio in the second largest economy in the world. 
 
HansSy, SM Prime president, said the company is “happy” with the performance of its businesses in China through its six malls with gross floor area of 900,000 square meters.
 
“People were saying China economy is going down, our growth is double-digit over there,” said Sy.
 
“Similar to Manila, we had our first mall then the second mall came a bit four years later, then the third two years later and so on. Slowly, as we build the momentum, then we will continue to expand. So we’re still very much on track,” he added.
 
Sy said the company is confident its “formula” in China is working and hopes to see the same in its first residential project in Chengdu. SM Prime earlier said it is allocating P6 billion for the four-tower residential complex of 1,000 units near its mall in China.
 
“That one we would like to observe. But as far as shopping centers are concerned, we are quite confident our formula is working,” said Sy. 
 
“The number one issue I always have is brand equity. As much as people know us very well here, they don’t know us over there. But little by little, they’re starting to know us,” he added. 
 
“Number two is the organization. It’s actually very hard to develop people there. At my advantage, we have many Filipino managers who would volunteer to go there for one year,” Sy also said.
 
However, SM Prime remains conservative despite its overseas foray as it “doesn’t like to leverage too much,” said Sy.
 
SM Prime recently announced raising P10 billion from bonds as part of a planned P60-billion capital expenditure in the next three years.
 
SM Prime is aiming to double its net income to P32 billion by 2018 from P16 billion in 2014 when the SM group consolidated all of its property businesses under SM Prime. 
 
Sy said SM Prime will continue to build new malls while expanding existing one. This year, it will open new malls in TreceMartires, Cavite; San Jose del Monte, Bulacan; Cherry Congressional; Cherry Antipolo; and East Ortigas. 
 
The company will also redevelop portions of its Mall of Asia complex investing P1.5 billion to increase its retail area to 700,000 sq.m. – making it the biggest mall in the country. 
 
Up for expansion as well is SM Clark in Pampanga to include office space for the business process outsourcing sector. 
 
Henry Sy Jr., SM Prime chairman, said the residential business will be expanding its product offerings from its core offering of affordable condominiums.  
 
“We will be moving up and below that range,” said Sy, notingthese will include mid-rise buildings with about two to three bedrooms per unit as well as house and lots worth about P1 million for the economic housing segment. 
 
SM Prime eyes to launch 12,000 to 15,000 residential units this year, 2,000 units of which will be economic housing.  
 
Sy said SM Prime is also evaluating areas in the Asean region “to see where we will get the most opportunities.”