CHEMICALS trader SBS Philippines Corp., through its unit SBS Holdings and Enterprises Corp., said its diversification strategy on property development only involves small-ownership stake in firms investing in real estate.
The company added the strategy to go into small ownership rather than having a majority control over the projects is meant to have more diversified interests in different property holdings at a lower capital requirement and risk exposure.
For instance, the company said its newly incorporated associate called Joine Holdings Corp. is set to conclude the purchase of a prime commercial property located along Edsa in Barangay Wack Wack, Mandaluyong and having an area of approximately 2,371 square meters (sq m).
The acquisition is a sizeable property in close proximity to the POEA Building and the Robinsons Galleria in Edsa-Mandaluyong, making it a very desirable business and commercial location, the company said.
SBS owns a 22-percent equity stake in Joine Holdings.
The company also completed the acquisition of a 54,598.17-sq-m prime property along J. P. Rizal Street in Mandaluyong by Cleon Phils. Holdings Corp., where SBS owns a 37.25-percent equity stake.
“This investment strategy will allow the SBS Group to grow and capture opportunities presented in the robust real property sector,” SBS said. “The property market growth in the Philippines has led to a sustainable and long-term value proposition due to the optimism of the prospects of Philippine economy, availability of credit and lower financing terms and the growing requirements of the property development industry.”
To date, SBS unit’s property-related investments include a 22-percent equity interest in Apschester Holdings Corp., which is the owner of a 1,765.5-sq-m commercial lot along Ortigas Avenue in Greenhills, Mandaluyong City. It also owns a 17-percent stake in Asida Holding Corp. which owns a 1,647-sq-m commercial property along Edsa in Mandaluyong City; a 17-percent equity interest in Aresa Holdings Corp., which owns a 30,0000-sq-m commercial lot in Malabon; a 17-percent equity interest in Mansfield Holdings Corp., which is the owner of a 5,000-sq-m commercial-residential lot located along North Edsa in Quezon City; and a 17.65-percent shareholding interest in Goldchester Holdings Corp., which is the owner of a commercial-industrial complex with a total area of 31,423.5 sq m located along the north side of Edsa in Quezon City.
SBS also has investment portfolio for those firms that own properties outside of Metro Manila. These include a 25-percent shareholdings in ICare Holdings Corp., which owns a 56,470-sq-m industrial property in Marilao, Bulacan; a 17-percent equity interest in Morechester Phils. Inc., which owns a 63,562.5-sq-m lot along Emilio Aguinaldo Highway in Dasmarinas, Cavite City; and a 17.5-percent stake in Scott Holdings Corp., which owns an 18,697-sq-m residential lot in Bacolod City, Negros Occidental.
“Except for Goldchester, each of the equity investment in these property-holding associate companies was made through subscription to newly issued shares at amounts less than 10 percent of SBS’s total shareholders’ equity,” the company said.