Mall developer SM Prime Holdings Inc. (SM Prime) has allocated P12 billion in capital expenditures for the year, with focus on the construction of four new malls locally and laying the groundwork for three new malls in China on top of the three malls earlier acquired.

Speaking at the sidelines of the firm’s annual stockholders meeting yesterday, SM Prime president Hans T. Sy said the new malls abroad will serve ‘as springboard to lucrative cities in China.’

Jerrey Lim, SM Prime chief finance officer, said they may see a 15 percent top-line growth for the company’s Q1 operation although firm figures may only be available by May.

Four new malls are expected to be constructed by SM Prime in Tarlac, San Pablo and Calamba in Laguna, and Commonwealth in Quezon City with scheduled opening next year. A total of P6.5 billion has been allocated for the four new malls.

For the China foray, SM Prime is allocating P5.5 billion for malls in Suzhou, Chongqing, and Zibo, all second tier cities in China.

Sy said the company’s China experience has been similar to their experience locally when SM was still starting its mall business.

‘We still have to introduce to them what the concept of malling is all about. We have to be patient,’ said Sy. ‘We need to build the brand equity… (and the) business.’

Construction for SM Suzhou, the fourth China mall, has begun construction and it is scheduled to open in 2010. SM Suzhou has a gross floor area of 73,000 sq. m. and a leasable area of 18,000 sq. m. SM Chongqing and SM Zibo will have a gross floor area of 140,000 and 120,000 sq. m., respectively, and are expected to open in 2011 and 2012.

For the year, SM expects to increase its gross floor area to 4.5 million sq. m. with 39 malls, 36 locally and three in China. This year, SM Prime is set to open malls in Naga (73,000 sq. m.), Pamplona, Las Pinas (40,000 sq.m.), and Rosario, Cavite (50,00 sq. m.). The company is also looking to open the Sky Garden at SM North EDSA (an additional 34,00 sq.m.) and to expand SM Super center Rosales (an added 17,000 sq.m.).