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THE
Henry Sy-led SM Investments Corp. (SMIC) has renamed
Shoemart Inc., the main holding firm for SM
property-related subsidiaries and projects, as SM Land
Inc.
In a
statement Thursday, SMIC said the ongoing changes in the
property group is part of the ongoing realignment of SM
assets to simplify its corporate structure and put
subsidiaries, affiliates and other assets together in
their respective lines of business or interest. The
group is into retail merchandising, mall operations, the
banking and financial services, real- estate
development, and private investments.
Among
the companies which fall under SM Land are SM
Development Corp., which is SMIC’s development arm for
high-rise residential, subdivision, and commercial space
for sale and/or for lease; Central Business Park, which
is a 60-hectare urban development project in Pasay where
the Mall of Asia is located; Highlands Prime Inc., the
residential developer in Tagaytay; Taal Vista Hotel
Inc., which operates a landmark hotel also in Tagaytay;
and finally, Hamilo Coast, which is the country’s
largest ecotourism resort and retirement village
development project in Nasugbu, Batangas.
“The
realignment also aims to achieve greater transparency
and the company’s ability to unlock the value of
specific assets,” the company added.
Two
years ago, the board of SMIC approved a plan to undergo
a process that will simplify its corporate structure and
put subsidiaries, affiliates and other assets together
in their respective lines of business or interest.
The
primary objective of the restructuring was to realign
the ownership of shares and properties within SM to
follow major business lines. The move is expected to
help investment analysts forecast the company’s future
earnings and place a realistic value on its assets.
Funding
options for future projects are also seen to broaden as
the specific lines of business can then tap specialized
investment funds that match their specific areas of
interest.
The
retail line will have under its wing the companies
operating the SM Department Stores, SM Supermarkets and
the SM Hypermarkets.
SM Prime
Holdings, which has been listed since 1994, will
continue to be the sole mall operator of the group. The
company also has huge inventory of raw land and land
where its malls are currently situated. Being in prime
locations all over the country, these lots provide
high-rise development opportunities as well in the
future for SM Prime, making it a vital partner in either
the high-rise residential or commercial projects of SM’s
property group. The banks, namely Banco De Oro Unibank
and China Banking Corp., will continue to operate
independently given their solid performance in the
market and strong profitability. |
