(Bloomberg) -- Top Philippine mall operator SM Prime Holdings Inc. is accelerating expansion plans at home and not investing aggressively in its China business where competition is tighter, according to a top official.
The integrated property developer established by late billionaire Henry Sy has 86 shopping malls in the Philippines and eight in China as of end-June. SM’s China business is growing organically, “which means we don’t send money to China anymore,” Hans Sy, SM Prime executive committee chairman, told reporters in Manila.
“I’m stepping up the expansion here where we have the advantage. Over there, there’s just so much competition,” Sy said.
SM Prime expects to complete the redevelopment and expansion of its flagship Mall of Asia — the largest in the Philippines and the sixth biggest in the world — by the end of 2024, Sy said, aiming to upgrade consumers’ shopping experience amid changing lifestyles.
The developer earlier announced plans to open four shopping malls in the Southeast Asian country this year. In China, the plan is to open one mall every two years, according to Sy.
Consumer spending is the main driver of the Philippine economy, one of the fastest growing in Asia this year. China’s expansion unexpectedly slowed to the worst pace in five quarters in April-June as faltering consumer spending undermined an export boom.
SM Prime is also on track to complete within three years its 150-billion peso ($2.7 billion), 360-hectare reclamation project along Manila Bay. It has started negotiations with potential joint venture partners for development plans after reclamation. “It will be developed as a modern city,” Sy said.
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