SM Prime to develop condo units in China by 2015

MANILA, Philippines – SM Prime Holdings Inc. is set to develop condominium projects in China by 2015 with the identification of two possible sites for the residential units.

SM Prime executive vice president and chief finance officer Jeffrey Lim said the two possible sites are Chengdu and Yangzhou in central Jiangsu Province.

The proposed residential projects will be located within the vicinity of SM malls to attract Chinese middle-income earners.

“There are people saying that [the China property market] seems to be slowing down, but [it depends] on the area,” Lim said.

“We are positive about our development because it is within vicinity of the mall so it is attractive to buyers,” he added.

The company has five malls in China, located in Xiamen, Jinjiang, Chengdu, Suzhou and Chongqing. 

Two more malls are under construction: the SM Zibo, expected to open later this year, and SM Tainjin, expected to open in 2015.

To open new malls, hotels, residential buildings and tourism-related projects, SM Prime has allocated P71 billion in capital expenditures.

Lim said SM Prime has received offers to invest in Myanmar and Thailand, but said the company is currently focused on developing property in the Philippines and China.

“We are always looking at opportunities and we are exploring all these opportunities presented to us. But right now our focus is in the Philippines and China,” Lim said.

One of the Philippines’ largest property developers, SM Prime has reported a 12% growth in first half net income, bringing it to P9.8 billion. It reported a 7% increase in revenue to P33.42 billion. 

Last week, the company reported a 12% growth in net income for the second quarter of the year, from P4.66 billion to P5.22 billion. Meanwhile, second quarter consolidated revenues increased by 11% to P18.08 billion. – Rappler.com