SM Prime Holdings Inc. might list the overseas subsidiary handling the firm’s China-based shopping centers within the next five years, said Jose Sio, chief finance officer of parent company SM Investments Corp.

In an interview with reporters on Thursday, Sio also said the group’s property unit SM Development Corp. (SMDC) plans to offer real estate products to overseas buyers.

“SMDC’s projects have been very successful here and with its expansion program, this is one area that can be brought to the international market for investors,” said the company executive, noting that SMDC may proceed with the plan in 2010.

SMDC is expected to hold its P5 billion rights offering on January next year, proceeds of which be used to fund the company’s landbanking activities. Sio disclosed that a follow on offering may be held on the “middle part to the third quarter” of 2010, depending on market conditions.

This is in addition to a possibility that holding firm SM Investments Corp. may sell dollar bonds in the first quarter of 2010, Sio said.

SM’s China malls are seen to drive the group’s long-term growth, prompting SM Prime to explore the listing of its Hong Kong-based subsidiary on various stock exchanges in other Asian countries.

The company’s China operations are currently under three subsidiaries but these will soon be folded into one company—SM Land Hong Kong.

“When [our China malls] reach critical mass, [SM Land Hong Kong ] can be listed in Hong Kong, Singapore or even in Shanghai,” said Sio.

Defining critical mass, Sio said this will occur after the mall developer has 10 malls in China. At present, there are only three mall in the mainland located in Xiamen, Jinjiang in southern China and Chengdu in central China.

SM Prime president Hans Sy early this week said the company plans to build eight malls in China until 2014.

Next year, the company has allotted over P12 billion to build five additional malls in the Philippines, and one in Suzhou, China. Other Chinese cities being considered are Chonging and Zibo. This is part of the group’s international strategy to grow from smaller urban centers rather than locating in large, developed cities.

“This is why we don’t want to put a mall in Beijing or Shanghai.  We go into smaller cities, because we know the culture of people in provinces,” said Sio. “The market for us is the masses.”

SM Prime said net income in the first nine months hit P5.1 billion, up 8 percent from last year. This includes the operations in China, which presently contribute 5 percent and 2 percent to revenues and net income, respectively.

SM prime opens today its 36th local mall in Rosario, Cavite, also the firm’s fourth in the province. In 2010, the company is set to open SM malls in Novaliches in Quezon City; Tarlac; Masinag in Antipolo City, Rizal; as well as in Calamba and San Pablo, both in the province of Laguna.

By the end of next year, the company will have 41 malls all over the Philippines, with an estimated gross floor area of 4.7 million square meters.