iREALTYTimes - A shopping mall developer owned by Phillippine magnate Henry Sy plans
on spending $63 million pesos--about $1.5 billion USD--to build a slew
of shopping malls and residential structures in China.
SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.
The expansion would not only sustain company growth, a spokesperson for the company said, but increase it--thanks to China's blooming market and consumer spending powers.
"I am quite positive that we can accelerate our earnings growth," Hans Sy, son of Henry, told media.
New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world's fastest-growing major economy.
Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Phillippines too, since many Phillipino work in China and Hong Kong, sending most of their salary back home.
Other developers are joining suit. CapitaLand, Southeast Asia's biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.
"We want to still acquire more shopping mall projects," CEO Liew Mun Leong told the Post. "That will be a large part of our appetite."
The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.
Meanwhile, SM Prime will also build more malls in its native country. But that will come after the Chinese expansion--and the money it will bring.
SM Prime said it would fund the expansion with a mix of cash from operations and debt.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.
The expansion would not only sustain company growth, a spokesperson for the company said, but increase it--thanks to China's blooming market and consumer spending powers.
"I am quite positive that we can accelerate our earnings growth," Hans Sy, son of Henry, told media.
New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world's fastest-growing major economy.
Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Phillippines too, since many Phillipino work in China and Hong Kong, sending most of their salary back home.
Other developers are joining suit. CapitaLand, Southeast Asia's biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.
"We want to still acquire more shopping mall projects," CEO Liew Mun Leong told the Post. "That will be a large part of our appetite."
The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.
Meanwhile, SM Prime will also build more malls in its native country. But that will come after the Chinese expansion--and the money it will bring.
SM Prime said it would fund the expansion with a mix of cash from operations and debt.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
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