SM Prime Holdings Inc. is expanding its business in China to include high-rise residential projects as well as malls in the next two years, company executives said.

“Our plan right now in China is to do malls and extend that to residential developments,” SM Prime Holdings Inc. executive vice president Jeffrey Lim told reporters last week.

“In the next year or so, we’ll probably be able to launch,” he said.

This plan, originally set to happen two years ago, was pushed back to give way for the consolidation of the SM Group’s property businesses, he said.

“We consolidated only last year so we had to do some planning,” Lim said. “We have to make sure that the first one will be successful because that will give us momentum.”

In May 2013, the SM Group consolidated its property companies and real estate assets under SM Prime. The Philippine Securities and Exchange Commission approved the reorganization on October 10.

Lim said they plan to build residential towers beside SM malls, as the company is doing in the Philippines.

“We’re positive about our development because it’s within the vicinity of the mall. In terms of amenities, it will be more attractive to buyers because they are just steps away from the mall,” he noted.

“The last one [land] we bought is in Yangzhou in Jiangsu province and we’re trying to do one in Chengdu, but it’s still in the planning stage,” Lim added.

So far, SM has five malls in China: in Xiamen, Jinjiang, Chengdu, Chongqing and Suzhou.

It will open SM Zibo later this year and SM Tainjin some time next year.

While the company has been approached by developers from Thailand and Myanmar, Lim said, focus will still remain in the Philippines and in China.

“Right now focus is in the Philippines and China but we will continue to evaluate these opportunities,” he said.

However, SM Investments Corp. president and CEO Hans Sy said the group will still be on the lookout for possible investments in the ASEAN region related to its core businesses.

“We’re committed and will focus on our three main core businesses but that does not stop us from entertaining some ideas where there are very good opportunities out there,” he said.

Last April, SM Prime unveiled a five-year plan that involves P400 billion in capital expenditures to double revenues and income of the consolidated property company of the Sy group. — BM, GMA News