Vol. XXI, No. 188 [ Business World Online ]
Friday, April 25, 2008 | MANILA, PHILIPPINES
THE COUNTRY’S biggest mall operator is building its fourth mall in China as it takes advantage of the latter’s booming population while building brand equity within the region amid an anticipated slowdown in the US, company officials said yesterday.
The mall will be located in Chongqing, the largest and most populous of China’s four provincial level municipalities, right at its center, SM Prime President Hans T. Sy told reporters after the firm’s stockholders’ meeting yesterday.
"We have already acquired the property, which is about 140,000 square meters," he said. Construction of the P1-billion mall will start in the third quarter.
The announcement followed SM Prime’s decision earlier this year to acquire three malls in China through a share swap agreement valued at P8.5 billion. The company has yet to seek the approval of the Philippine Stock Exchange and Securities and Exchange Commission. The three malls are in Xiamen, Jinjiang and Chengdu, with a gross floor area the size of between 31 and 42 football fields.
SM Prime Executive Vice-President and Chief Financial Officer Jeffrey C. Lim said their growth would still be driven by Philippine operations. China contributes less than 3% to total revenues. — Lovely Nica P. Lee
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