SM Prime Holdings Inc. is intensifying its presence in China with plans to open two new shopping malls in Fujian Province by 2025. The move comes as part of the company’s continued expansion strategy, with new developments in Xiamen and Fuzhou expected to bolster its footprint in one of the world’s largest retail markets.
In a statement, SM Supermalls president Steven T. Tan confirmed that the company would complete the fourth expansion of SM City Xiamen, which will include a new boutique hotel. The hotel, a key component of the expansion, will feature more than 100 rooms. Tan told reporters SM Prime is in the final stages of securing a partnership with the Intercon Group for the operation of the hotel, though he did not disclose the brand name.
“Right now, we’ve already opened the first part of Xiamen 4, and the hotel should be finished by next year. Xiamen is really progressive; when you total it all, it might actually be even bigger than Mall of Asia and Megamall,” Tan said. SM City Xiamen, the company’s flagship mall in the region, has been expanding rapidly since its initial opening, with the latest expansion slated for completion in 2025.
Additionally, SM Prime is constructing a second mall on the outskirts of Xiamen, made possible by a new government-offered lot. Though smaller than the flagship mall, Tan said the new development still represents a significant opportunity for the company. “It’s not as big as the original Xiamen site, but it’s not small,” he added. The new mall will mark the company’s second in Xiamen, with a projected opening in 2025.
In Fuzhou, another key city in Fujian Province, SM Prime is also planning to launch a new mall by 2027. Tan explained that the company’s focus on Fujian is driven by its proximity to the region, as well as the continued success of its existing assets there. “Fujian Province is a market where we are doing very well,” said Tan.
Beyond Xiamen, SM Prime is also seeing positive results in other Chinese cities such as Xinjiang and Suzhou, both of which have rebounded strongly post-pandemic. However, Tan noted the ongoing challenges presented by China’s economic slowdown, a trend that has affected retail performance in some areas.
“Revenues in some of our other malls are not falling, and we remain resilient,” Tan said. Despite a slowdown in economic growth, SM Prime’s malls in China continue to show promise, particularly in its well-performing markets like Xiamen.
SM Prime is also strategically focused on maximizing its existing land assets, with company president and CEO Jeffrey C. Lim earlier saying they plan to continue developing their holdings in China. In total, SM Prime operates nine malls across China, with locations in cities such as Chengdu, Chongqing, Tianjin, and Yangzhou.
