SM Prime launches 24-hour retail district at SM Xiamen City

Jeffrey C. Lim

SM Prime president 

SM Prime Holdings Inc. is launching its first 24-hour commercial format in China, betting that a youth-driven retail concept can keep its flagship Xiamen property ahead in one of the world’s most fiercely competitive shopping mall markets.

Instead of adding another enclosed shopping mall, the Philippine real estate giant is carving out a P1.5-billion commercial district spanning about 19,400 square meters.

The first phase is scheduled to open in September, while the second phase is targeted for completion before the end of 2027.

Similar concepts are gaining traction in China’s biggest cities, but SM is now bringing the format to Xiamen, a leading Tier 2 commercial hub in Fujian province—the birthplace of SM Group founder Henry Sy Sr.—where it hopes to stay ahead of changing consumer tastes.

“SM Xiamen City holds a distinct place in our company’s history. Being our first overseas investment, it has served as a long-term platform for learning, expansion and growth in China,” said SM Prime president Jeffrey C. Lim.

Flagship keeps growing

This project builds on more than two decades of investment in Xiamen.

• SM Xiamen City was SM Prime’s first project outside the Philippines, opening in 2001 and serving as the group’s flagship development in mainland China.
• The property has expanded through three development phases, evolving into a mixed-use complex that now includes three office towers, with two more set to open next year.
• The complex is also home to the 325-room voco Xiamen SM City, SM Prime’s first overseas hotel, which opened in June under IHG Hotels & Resorts.
• The SM Xiamen malls attract about 150,000 visitors on weekdays and up to 500,000 on weekends and holidays. 
• At about 418,000 square meters of gross floor area, SM Xiamen City is the group’s largest mall in China, accounting for nearly one-quarter of its 1.82-million-square-meter mainland portfolio.
• SM Prime operates nine malls across mainland China, with Fujian serving as the centerpiece of its expansion strategy.

Johnson Co

SM China country head

Retail race shifts

In China, malls now compete as much for attention as they do for tenants.

CHAO Block reflects that shift, with SM moving beyond a traditional mall expansion to create a district built around retail, events and community spaces.

The project also aims to provide a platform for local entrepreneurs, independent founders, cultural curators and first-to-market concepts, reflecting Xiamen’s growing appeal to younger consumers and creative businesses.

“As Xiamen continues to develop, we intend to keep strengthening the property and the local entrepreneurs so it remains an important part of the city’s commercial landscape,” Lim said.

—Edited by Miguel R. Camus