In spite of recent economic troubles in China, SM Prime Holdings Inc. announced that it was forging ahead with a residential project in Chengdu, the capital of southwestern province Sichuan.
According to SM Prime, China's economic crisis affected only its stock market, and the retail market was immune. Furthermore, the company claimed it can cope with problems that the stock market crisis might lead to.
The upcoming development is found beside SM City Chengdu, a mall that the company had opened in 2006. The residential component is slated to have four towers upon completion; subsidiary SM Development Corporation (SMDC) is presently working on the first.
"That is the property that we have right now, which has a residential component. Usually, in all of these developments, we had to do the shopping center component first before we go into residential so that we will have the anchor," issued Jeffrey C. Lim, executive vice president of SM Prime.
Lim remarks that condominium units in Chengdu are larger than the average in the Philippines. "Here, we're looking at about 24 square meters. In China, we're looking at a minimum of 40-50 square meters," said Lim.
The development is set to open 300-400 units initially, with the total being 1,500 units for the middle-income segment.
This April, SM Prime announced a P20-billion yearly budget for expanding its developments and its land bank in China. It has six malls in China to date, with the seventh -- its biggest yet, in the mainland -- set to open by the end of 2015.