Philippine-based conglomerate SM Investments Corp said it is looking at the possibility of expanding its retail and mall operations under unit SM Prime Holdings Inc into China, and is also considering listing its mall assets in Singapore. 

‘We’re looking into expanding in China. In fact, SM Prime is looking into it and studying the China market,’ SM Prime Holdings executive vice-president Jeffrey Lim told XFN-Asia in a recent interview. 

Officials of the conglomerate, the biggest shopping mall operator in the Philippines, were in Singapore last month to conduct a non-deal roadshow and discuss investment plans with overseas investors. 

Lim said SM Prime will decide by the second half of this year if it will go ahead and spread its reach in China.  Currently, SM Investments chairman Henry Sy has three family-owned malls operating in China — two in Xiamen and one in Chengdu. 

‘There are several options available for us. The China assets could be listed in a REIT (real estate investment trust) either here or in Hong Kong or it could be injected into a listed company and they will be part of the expansion program in China,’ Lim said. 

SM Investments executive vice-president and chief financial officer Jose Sio said: ‘For SM Prime, there is that interest to list in Singapore.’ 

Sio said the main obstacles to a REIT listing for the company are the expenses usually incurred from shifting assets over and double taxation that may arise as a result of Philippine regulations. 

‘[But] this is now being reviewed by our government, so it’s a question of time, I guess,’ Sio said. 

He said SM Investments has allocated 20 bln pesos for capital expenditures this year covering its core businesses such as retail and mall operations, banking and property development.

SM Prime will spend 7 bln pesos this year for the construction of four new malls and the expansion of two existing ones. It currently has 27 malls all over the Philippines.