XIAMEN CITY, China – SM Prime Holdings, Inc. is expanding its first mall in China with a new P1.5-billion retail development as it scales back its China expansion strategy in Fujian province, where it said the company has established strong brand recognition.
The property developer will launch the 19,403-square-meters (sq.m.) Block CHAO at SM Xiamen City, its first overseas development, as it continues to invest in the province while taking a gradual approach to China expansion.
“Moving forward, we will focus on Fujian province,” SM Prime Minister Jeffrey C. Lim told reporters during a press conference on Friday.
Mr. Lim said the company remains open to opportunities suggested by local governments but aims to strengthen its presence in Fujian, where the SM brand is already well established.
“China is very big. Every province is almost like a different country. The good thing for us is that the SM name is very popular and well known in Fujian,” he said.
Despite the new focus, Mr. Lim said the group’s China operations are “not part” of the integrated SM Prime business, adding that the company has no immediate plans to divest its Chinese assets to a higher level.
CHAO Block is considered a “neo-urban block” that goes beyond the traditional mall structure by bringing together independent innovators, local entrepreneurs, cultural preservationists, and first-to-market concepts.
The P1.5-billion project will be completed in phases, with the first phase scheduled to open in September and the second phase targeted for completion in the fourth quarter of 2027.
Employers will also be encouraged to host workshops, product launches, exhibitions, community events, and product collaborations.
“SM Xiamen City has a unique place in our company’s history. As our first overseas investment, it has served as a long-term platform for learning, expansion and growth in China,” said Mr Lim.
“As Xiamen continues to develop, we intend to continue to strengthen the area and local entrepreneurs so that it remains an important part of the city’s commerce,” he added.
Established in 2001, SM Xiamen City was developed as a one-stop shop for the general consumer market.
In 2009, the area increased by 109,922 sq.m. of gross floor area (GFA) as part of the reconfiguration of the high-end lifestyle shopping center. By 2022, add another 129,195 sq.m. of GFA and revamped its tenant mix to cater for younger buyers and the growing demand for social and experiential spaces.
Today, SM Xiamen City has more than 500 stores, including international brands such as the Apple Store, Sephora, Maison Le Fame, and Lululemon, as well as Walmart and a variety of restaurants and cafes.
Mr. Lim said the company also plans to apply lessons from SM Xiamen City’s evolution to its Philippine expansion by introducing more experiential retail concepts.
In the Philippines, SM Prime, through SM Development Corp. (SMDC), is shifting its residential focus to deal with the province’s economic housing to deal with what Mr.
The company is targeting a “fixed” price of P3.6-million for buyers in Davao, Iloilo, Mabalacat, Pampanga, and Trece Martires, Cavite.
While Metro Manila properties continue to face challenges, SM Prime plans to sell its existing assets in the capital while expanding its fixed income business and provincial base. The company expects to produce about 25,000 houses per year.
Separately, Mr. Lim said that the sand placement of SM Prime’s Manila Bay reclamation project has been completed, and the work is now focused on coastal protection, including armor stones and reclamation.
“Our commitment to the government is to transform by mid-2028,” he said, adding that land development, including roads and utilities, is expected to be completed between 2026 and early 2027.
The company is also studying the temporary use of parts of the reclaimed land, especially the island opposite the SM Mall of Asia. The short-term development, which may last five to 10 years, could include sports facilities to be used by third-party partners instead of SM Prime. – Juliana Chloe A. Gonzales
