SM GROUP is firming up plans to penetrate China’s residential property market after completing the consolidation of its real estate businesses under SM Prime Holdings, Inc., a top official said late Tuesday.

“That is one of the strengths; with the consolidated group, we can really go to China with residential [developments] because it was only the malls before,” SM Prime President Hans T. Sy told reporters on the sidelines of the Philippine Stock Exchange’s Bell Awards in Makati City.

SM Group aims to complete the consolidation of its property businesses by yearend.

SM Prime, the umbrella company, has begun the process of acquiring Sy-owned hotels and convention centers. This after it merged with SM Land, Inc., which had absorbed condominium builder SM Development Corp. and leisure property developer Highlands Prime, Inc.

Mr. Sy cited regulatory concerns as some of the roadblocks that delayed SM Group’s foray into residential projects in China, a plan first announced in 2010.

SM Prime already operates five malls in China — in Xiamen, Jinjiang, Chengdu, Suzhou, and Chongqing. It plans to open a branch in Zibo, Shandong province, next year.

Mr. Sy said the company plans to replicate the “lifestyle city” formula in China.

“We believe the Philippine formula works very well in China. It’s a bit different, but it works very well,” he said.

Mr. Sy declined to specify prospects, saying that SM Prime will unveil next year a five-year plan that will chart the growth path for the company.

A “lifestyle city” is a mixed-used development — such as that of the SM Mall of Asia complex in Pasay City — which has retail, residential, office, hotel, and convention center components.

SM Prime is also building a “lifestyle city” in Cebu, while another in Davao City is in the pipeline.

Once the consolidation is complete, SM Prime is expected to the biggest property firm in Southeast Asia in terms of market capitalization. Its market value is expected to balloon to $14 billion, or around P560 billion from around P338 billion.

At the same time, SM Prime’s total assets will also increase to P284.1 billion from P148.1 billion; revenues will rise to P57.4 billion from P30.7 billion; and annual net income will grow to P17.0 billion from P10.9 billion once consolidation is finished.