SM to Build 3 Malls a Year in China
SM retail tycoon and billionaire Henry Sy will be building 3 malls a year in China as an expansion strategy ro rebound from the global recession. SM Prime Holdings Inc. is expected to spend 5.5 billion Pesos in China this year. According to Forbes magazine, Henry Sy is estimated to be worth $2.7 billion. SM Prime expects to open one mall in 2010 and increase the pace to 3 malls a year by 2013. About 20% of the Philippine’s consumer spending is done through SM’S malls and stores, and the company gets 33 cents of every U.S. Dollar spent by families of Filipinos working abroad. SM Prime doesn’t sell retail space, instead preferring long-term recurring rental income and will apply the same principle in China. It will focus on the mainland’s emerging cities because their development and consumers’ profiles closely resemble those at home.