XIAMEN, China: SM Prime Holdings Inc. is expanding its presence in China following the success of its first four malls in the mainland. The Philippines’ largest mall developer and operator will spend approximately 3.58 billion renminbi or P23.63 billion for the development of new malls in Suzhou, Chongqing, Shandong and Tianjin, where the company plans to build a shopping center bigger than the Mall of Asia (MOA) in Pasay City.

Annie Garcia, SM Shopping Center Management Corp. president, said SM Prime is also negotiating for new mall sites in China, including one in Foochou, the capital of Fujian province.

SM Prime has two malls in Xiamen catering to the masses and the upper-middle market. The Philippine mall operator is also present in Jinjiang and Chengdu.

The company will invest 2 billion renminbi to build SM Tianjin, expected to be its biggest mall with a gross leasable space of 530,000 square meters. MOA has 409,000 square meters.

This marks SM Prime’s first foray into a first-tier city in China since it has focused in establishing a market in growing and underserved areas where competition is not as tight. Tianjin is one of four major cities in China, including Beijing and Shanghai.

Situated on a 43-hectare lot, the mall in Tianjin will have the size of three football stadiums. Construction has begun early this year and will be completed by 2013.

With a gross leasable area of 73,000 square meters, SM Suzhou will cost 450 million renminbi, which is more expensive than the other malls because of the high cost of land. It is set to open before the end of the year.

SM Chongqing, which will open next year, will have 150,000 square meters of gross leasable space and will cost 500 million renminbi, while SM Shandong will cost 630 million and will have 170,000 square meters when it opens in late 2013.

SM Prime opened the last phase of its SM Lifestyle Center on September 24. The new mall, which costs 330 million renminbi, has 110,000 square meters and consists of three buildings.

“This is SM’s answer to the rising middle-class, who is becoming more optimistic,” Marcus Dee, SM Lifestyle Center mall manager, said.

Dee said the market in the area was becoming more “status-conscious” because of their newfound affluence.

The mall, which serves a more upscale market, is just across the street from SM Xiamen—the group’s most mature and most profitable mall in China.

Danny Ngao, assistant vice president for leasing in SM’s China regional headquarters, said SM Xiamen is fully leased out while the malls in Jinjiang and Chengdu have occupancy rates of about 92 percent.

The new SM Lifestyle Center is already 80 percent occupied and is expected to end the year with an occupancy rate of 90 percent once more shops open.

SM Prime’s profit grew by 10 percent in the first six months to P3.8 billion from P3.4 billion last year, on the back of improved consumer spending.

SM Prime lost P0.06 to close at P12.44 each on Friday.