SM Prime Holdings eyes three more malls in Cebu

CEBU, Philippines - SM Prime Holdings Inc., the conglomerate that owns and manages SM shopping malls in the country is currently negotiating with three properties here in Cebu for possible sites of three new malls.

“We are still in the middle of negotiations but we will come out with some good news towards the end of the third quarter because we should be closing some deals by then,” said SM Prime Holdings president Hans T. Sy in an interview.

However, Sy stressed that they could not assure that these three properties will all be clinched but he hopes that they can get all three.

He also said that the three new properties will hopefully include the South Road Properties (SRP) site.

After SM Prime Holdings close the deals for the three new sites in Cebu this third quarter, they are targeting to construct the malls simultaneously within 18 to 30 months so that it will be ready for operation by 2011.

Sy said that there are certain formulas that they are looking for in acquiring a new site for their mall operations and traditionally, the size requirement is around four to five hectares because the size that is lower than that becomes a super center, a smaller version of existing SM malls.

The three sites that SM is negotiating with measures around 80,000 to 85,000 square meters with provisions to expand to 200, 000 square meters like SM City Cebu, said Sy.

“Cebu is ready for three new SM malls and we are looking at utilizing our new operation and expansion approach. We believe that there is enough market even during the crisis because people look at shopping malls now as substitute for public parks so we will continue to develop malls into a destination center where people can go and visit,” said Sy.

Just recently, SM acquired new sites in Davao and General Santos for new malls and nationwide, they are set to open a supercenter in Las Piñas this October and in Rosario, Cavite this November.

Currently, SM has 36 malls all over the country and abroad as three of which is in China.

Sy bared plans to put up a fourth SM mall in Suzhou, China and expand its existing Xiamen operations.

“China is our growth story for the next five years. We are up against big competitors in China so our strategy is to move in to second to third tier cities which are areas that have never heard of shopping centers,” said Sy.

Aside from their plans to open another SM mall in China, the company is also looking at opening four new malls in 2010 which will include Tarlac, Antipolo and Calamba.

“Right now our main focus is in the Philippines because we still see a lot of growth here although everybody knows SM already. We will continue to strengthen our organization and we constantly tell our people to focus on Cebu which is currently the best place to be in Visayas and Mindanao. We are bullish of Cebu and we definitely have to have a second SM site here,” said Sy.