SM sees bigger presence in China

From Business Mirror Philippines

PHILIPPINE retail giant SM plans to make a bigger presence in the huge Chinese market, said SM Prime Holdings Inc. president Hans Sy.

In an interview on Monday with reporters, Sy disclosed that SM Prime plans to put up eight malls in China within a period of five years starting this year up to 2014 as part of beefing its presence in that country. “SM Prime Holdings Inc. plans to put at least eight malls in China as part of the company’s recognition of its immense potential in retail,” said Sy during the sidelines of the SM’s Green Retail Agenda held at the SMX Convention Center.

Among the Chinese cities that will soon have SM presence are Suzhou, Chonging and Zibo. Xiamen, Jinjiang in southern China and Chengdu in central China are the cities where SM is currently operating.

Sy added that SM Prime wants to concentrate on China because of the huge volume of consumers that can be tapped for its retail products. “This is also in preparation for SM because we project that the Philippine market will be saturated in five years,” he pointed out.
“China is a significant market for SM Prime,” added Sy.

At present, Sy said the Chinese operations contribute 2 percent to 3 percent to SM Prime’s overall growth.

As far as their mall projects are concerned, Sy said SM Prime’s landbank is good for 50 malls around the country.

For 2010, Sy said SM Prime plans to have a capital expenditure of P7 billion to P10 billion.
In another development, SM Shopping Center Management Corp. (SCMC) president Anna Maria Garcia said the company is going to intensify the pursuit of its green agenda by pursuing several initiatives in and out of the organization. To make their green programs deliver a bigger impact, Garcia said former US vice president Al Gore has accepted SM’s invitation to give a speech on the environment during his visit to the Philippines on April 30.

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