Investing Stocks in Philippines: SM Investments Corporation

Showing posts with label SM Investments Corporation. Show all posts

Thursday, May 2, 2013

Stock News 2013: Ayala Land to take over Boulevard’s landbank

English: Map of Batangas showing the location of Nasugbu (Photo credit: Wikipedia)

Property giant Ayala Land Inc. is expanding its beachfront landbank for leisure estate development south of Metro Manila through a property deal with Boulevard Holdings Inc., owner of the Puerto Azul complex in Cavite.

In a disclosure to the Philippine Stock Exchange on Friday, ALI said it had agreed to acquire certain landholding assets of BHI, subject to due diligence.

In a separate disclosure, BHI said the company’s board had authorized the company’s chair and chief executive officer Jose Marcel Panlilio to sign the terms of reference with respect to an arrangement to “sell to a prospective buyer/investor, an operating unit and/or assets of BHI, wholly or in part.”

A final agreement with the new investor is targeted for signing on or before May 10. Panlilio was authorized to execute other separate agreements relating to “other areas of cooperation” as soon as definitive agreements are reached, the BHI disclosure said.

Later in the day, ALI disclosed that it was the “investor” referred to by BHI but no other details were available.

Asked how many hectares of property were involved, ALI executive vice president Bobby Dy said: “We have to go through due diligence to finalize areas.”

BHI has long been scouting for a new investor to unlock values out of its vast seaside landbank. Biz Buzz reported last Monday that ALI was in discussions involving BHI’s landbank such as the 3,000-hectare Puerto Azul complex in Ternate, Cavite.

This deal with BHI is widely believed to be a strategic move for ALI, especially since rival SM group has already established its own beachfront leisure empire in the south with the 5,000-ha Hamilo Coast in neighboring Nasugbu, Batangas.

http://business.inquirer.net/118853/ayala-land-to-take-over-boulevards-beachfront-landbank

Sunday, April 28, 2013

Stock News 2013: SM profit jumps 22% in Q1

SM Prime Holdings (Photo credit: Wikipedia)

SM Investments Corp. (SMIC), the investment holding vehicle of the country’s richest man Henry Sy Sr., will outpace its targeted profit growth this year on the back of a 22-percent jump in first quarter earnings, top company executives said.

“From the figure I saw from the first quarter, I feel that we can have the range of about 15-17 percent (income growth),” said SMIC chief finance officer Jose Sio.

In its 2013-2015 plan, SMIC targets its profits to grow 12-15 percent annually, supported by the company’s continuous expansion.

But in the first quarter this year, its net income climbed 22 percent to P7.4 billion as revenues rose 15 percent to P56.8 billion from P49.6 billion a year ago.

“The growth was driven by the surge in earnings of SM’s banking business, coupled with strong earnings growth from SM’s mall and property businesses,” the company said.

“With the continuing rise in remittances from overseas Filipinos, the expansion of the country’s outsourcing sector and the recent credit upgrade of the Philippines to investment grade, we are confident of achieving even better results in the second quarter and beyond,” said SMIC president Harley T. Sy.

Of the first-quarter profits, SMIC derived 59.7 percent from banking (BDO Unibank Inc.), 15.8 percent from malls (SM Prime Holdings Inc.), 14.1 percent from retail operations (SM Retail Inc.) and 10.4 percent from property (SM Development Corp. and SM Land).

The trend regarding income contribution will continue given the strong financial sector in the Philippines, Sio said.

BDO’s earnings surged 257 percent to P10 billion in the first quarter as net interest income climbed 14 percent to P9.6 billion on the back of a 16-percent growth in customer loans and a nine-percent uptick in total deposits.

The country’s largest bank in terms of assets expects its full-year income to reach P20.4 billion.

Mall developer and operator SM Prime recorded a 15-percent gain in consolidated net income to P2.8 billion in the first three months of the year. Its revenues grew 11 percent to P7.8 billion.

SM Prime said its five malls in China contributed P700 million in revenues, up nine percent from last year.

SM Prime has 46 malls in the Philippines with a total gross floor area of 5.6 million square meters (sqm). In China, it has five malls with a total gross floor area of 0.8 million sqm.

For its part, SM Retail reported an income of P1.2 billion, up four percent from last year as sales rose 5.8 percent to P36.4 billion.

As of end-March, SM Retail had 201 stores consisting of 46 SM Department stores, 37 SM Supermarkets, 37 SM Hypermarkets and 81 SaveMore stores, up from just 176 stores in the same period last year.

SM’s property group recorded a net income of P1.8 billion, up 19 percent from last year. SMDC accounted for 76 percent of earnings.

In the first quarter, SMDC’s consolidated net income rose 12 percent to P1.4 billion.

The developer will launch four new projects this year that will introduce 13,000 condominium units to the market.

http://www.philstar.com/business/2013/04/26/934905/smic-profit-jumps-22-q1

Sunday, April 21, 2013

Stock News 2013: Ayala Land sets P15-B borrowings in H2

Land Title (Philippines) (Photo credit: Wikipedia)

Property giant Ayala Land Inc. (ALI) is tapping the debt market in the second half to borrow P15 billion as it takes advantage of the prevailing low interest rate environment.

The fundraising program will complete the P65.5-billion capital requirements of the country’s most valuable property firm for 2013, an executive said.

“We still have some borrowings that we plan for the rest of the year,” Jaime E. Ysmael, ALI senior vice-president chief finance officer told The STAR.

“ALI itself will probably need around P15 billion and the subsidiaries will have their own borrowing program,” Ysmael said.

The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years.

Ysmael said ALI’s return to the debt market will be in the second half “because we have enough resources right now coming off from the equity placement,” Ysmael said.

“We are looking at seven and 10 years of maturity or maybe longer to match the development cycle,” Ysmael said.

In an overnight equity placement in March, ALI generated P12.2 billion in fresh funding as it sold 399.528 million shares at P30.50 a piece, way above the initial target of 320 million shares amid high demand.

In its capital spending, ALI planned to secure P12 billion from equity, P20 to P25 billion from debts and the remaining requirement from internally-generated cash, Ysmael said.

Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity. Last week, conglomerate SM Investments Corp. announced its plan to raise P25 billion through loans and bonds.

“We intend to lock in on good rates. We believe the rates will still remain low, supportive of the more aggressive investments,” Ysmael said.

However, ALI is careful not to let its annual maturing debts reach more than P10 billion as part of its debt refinancing and payment management, Ysmael said.

In March, the policymaking Monetary Board of the Bangko Sentral ng Pilipinas kept interest rates at a record low of 3.5 percent for overnight borrowing and 5.5 percent for overnight lending.

It also cut the interest it pays on funds parked at its special deposit accounts (SDA) in a bid to push out idle funds to help fund economic activity and boost growth amid a benign inflation environment.

The real estate arm of the Ayala conglomerate is set to continue this year the trend of double-digit growth in revenues and profits.

Earnings of ALI surged 27 percent to P9.04 billion last year from P7.14 billion in the previous year as revenues from its residential, hotel, office and commercial projects jumped 23 percent to P54.52 billion.

http://philstar.com/business/2013/04/22/933295/ali-sets-p15-b-borrowings-h2

Sunday, March 10, 2013

Stock News 2013: SM Investments reports 2012 net income of P24.7 B

SM Investments Corporation (Photo credit: Wikipedia)

Henry Sy’s SM Investments Corp. boosted its net profit last year by 16.3 percent to P24.7 billion on a double-digit rise in earnings across its banking, retailing, shopping mall and residential development businesses.

Revenues increased by 12 percent to P223.9 billion while cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) went up by 24.2 percent to P54.9 billion, for an Ebitda margin of 24.5 percent, SMIC disclosed to the Philippine Stock Exchange on Wednesday.

This resulted in a return on equity of 14.3 percent for SMIC, the country’s most valuable conglomerate.

“SM’s strong full-year results were anchored not only on very favorable economic conditions, but also on the ability of our businesses to efficiently and effectively address the needs of our customers, who have grown increasingly more discerning,” SMIC president Harley Sy said in a press statement.

“Our performance during the year is testament to the hard work, focus, and dedication of the whole SM organization. With the positive economic outlook for 2013, we are confident of sustaining SM’s expansion and growth moving forward,” Sy said.

Banks accounted for the largest share of SM’s consolidated net income, contributing 34.4 percent of total. Retail operations accounted for 28.1 percent, followed by mall operations with 22.9 percent and property development, with 14.6 percent.

The group’s high-volume retailing business under SM Retail reported a net income of P6.6 billion last year, up by 12.5 percent. Net margin stood at 4.1 percent.

Retail sales rose by 7.6 percent to P159.5 billion, while Ebitda grew by 13.5 percent to P11.8 billion, for an Ebitda margin of 7.4 percent.

SM Retail expanded last year by a total of 34 stores, consisting of five department stores, four SM Supermarkets, seven SM Hypermarkets and 18 SaveMore stores. At the end of the year, SM Retail had a total of 202 stores, consisting of 46 department stores, 37 SM Supermarkets, 37 SM Hypermarkets, and 82 SaveMore stores.

http://business.inquirer.net/110939/sm-investments-reports-2012-net-income-of-p24-7-b

Sunday, December 16, 2012

Stock News 2012: BDO Keen On PNB Acquisition

Philippine National Bank (Photo credit: Wikipedia)

The SM group of companies is making a bid for the acquisition of a stake in Philippine National Bank and its possible merger with BDO Unibank Inc. as talks between PNB and Bank of the Philippine Islands remained inconclusive.

In an interview SM Investments Corporation chief finance officer Jose Sio said they are in discussions with PNB’s principal shareholder Lucio Tan for a possible investment in PNB.

“We are always interested in making investments for as long as it will help us grow,” Sio said adding that BDO chairperson Tessie Sy has a good relationship with Tan.

However, Sio laughed off market talk that BDO has offered to acquire a stake in PNB at R150 per share. “Well I heard market talk saying we offered R200 per share,” he countered. PNB last traded at R92.70 per share.

Sio said the price will have to be determined after they look into the quality of PNB’s assets although he noted that the bank has a good land bank of prime properties. The SM group is also in real estate, particularly malls and residential buildings.

Bank of the Philippine Islands and PNB have earlier asked the Philippine Stock Exchange to suspend the trading of their shares as they disclosed that their principals are in discussion for a possible merger.

However, the banks eventually asked the PSE to lift the trading suspension since no deal has been made.

It was reported that PNB may have received counter-offers from other banks since a merger between BPI and PNB may translate to market leadership, dislodging BDO as the top bank and Metrobank as the second largest lender in the country.

Analysts had said that a merger between BPI and PNB would have triggered a new wave of merger and acquisitions (M&As) in the local banking industry.

Once a merger between BDO and PNB pushes through, this would further cement BDO’s position as the country’s biggest bank.

COL Financial research head April Tan Lee noted that, in the 1990s, there was a wave of M&As after Equitable Bank merged with PCI Bank.

“I think what happened was that Metrobank bought all these banks afterwards to maintain its number one position,” Lee said adding that, “The question today is, will that trigger more consolidation from big names because they want to maintain their lead?”

http://www.mb.com.ph/articles/385912/bdo-keen-on-pnb-acquisition#.UMKFQuSmj3w

Friday, August 3, 2012

Stock News 2012: SM Prime allots P63 B for Phl, China expansion

English: SM Supermalls logo (Photo credit: Wikipedia)SM Prime Holdings Inc., the country’s largest retail landlord, has set a P63-billion three-year capital spending plan to rapidly expand its presence here and in China in its bid to become a regional player.

SM Prime chief financial officer Jeffrey C. Lim said the company is spending P21 billion each year to build four to five new malls at home and one mall annually in China to take advantage of rising consumer spending.

He said the company plans to open up to 18 malls in the next three years.

He said funding for the massive expansion will come from a combination of internally-generated cash and borrowings.

SM Prime expects to end the year with a total of 46 malls across the country and five in China, with an estimated combined gross floor area of 6.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open in the second half - SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

SM Prime’s four malls in China, located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou, contributed P320 million or seven percent to the company’s aggregate earnings. Combined revenues amounted to P1.27 billion or nine percent of total.

The SM China malls are enjoying healthy increases in rental rates, with average occupancy level now at 95 percent.

SM Prime said it continues to see vast opportunities in China given the world’s second largest economy’s growing population and emerging middle class.

The group is currently looking to acquire five properties in its second biggest market. It wants to reach new markets to further widen its geographical footprint.

The expansion is also in line with the SM Group’s strategy to list its China assets either in Hong Kong or Singapore by 2015 in a public offering that could fetch proceeds worth up to $500 million.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=833992

Thursday, July 19, 2012

Stock News 2012: SMIC taps into $1-B cash pile for new investments

English: SM City Fairview in Quezon City, Metro Manila, Philippines. (Photo credit: Wikipedia)
With a massive cash pile of around $1 billion, retail tycoon Henry Sy’s SM Investments Corp. (SMIC) is in a strong position to take advantage of any interesting opportunities that may crop up, according to a top company official.

SMIC chief finance officer Jose T. Sio said the holding firm is awash with cash, having raised P15 billion from the recent issuance of seven to 10-year fixed rate bonds. “We’re very liquid. We have like P40 billion plus in cash. Aside from that, we still have an untapped credit line,” he said.

Sio said the group has been looking for fresh uses of its huge cash reserves.

SMIC officials said they are still keen on acquiring a significant stake in the private holding firm that owns the 16-hectare Greenhills shopping complex, which would allow the SM Group to capture the lion’s share of the retail market in the fast-growing Ortigas-Pasig-Mandaluyong area.

The interest remains even as the group led by Ignacio R. Ortigas entered into a strategic alliance with property giant Ayala Land Inc., allowing the latter to participate in the development of the family’s various properties which include large residential, office, retail and hotel components

The Ortigas family exercised its right of first refusal over British banking giant HSBC’s stake in OCLP Holdings Inc. in a deal valued at P11 billion.

Meanwhile, Sio said SMIC may do another fund-raising within the year to take advantage of the country’s bright economic prospects following an upgrade to the Philippines’ sovereign credit standing to a notch below investment grade. “It would probably be a combination of equity and debt,” Sio said.

Proceeds from future cash-raising activities will be used to refinance existing obligations and for investments, Sio said.

He said SMIC sustained its growth traction in the second quarter, mainly due to the country’s strong economic fundamentals. “The second quarter is a little better than the first quarter. Traditionally, the second quarter is stronger than the first because of the summer break and the opening of schools,” he said.

Sio also disclosed that the group, through SM Prime and SM Development Corp., is in talks to buy tracts of land in various areas in China. “The property we’re acquiring should be good for the next three to four years,” he said.

SM Prime chief financial officer Jeffrey Lim earlier said they were looking to acquire five more properties in China to support their aggressive expansion in the world’s second biggest economy.

China is the group’s second biggest market next to the Philippines.

For this year, SMIC has set a capital spending of around P54 billion to continue the expansion of its banking, shopping mall, and real estate businesses. The capital budget is higher than what it spent in 2011.

http://www.philstar.com/Article.aspx?articleId=828533&publicationSubCategoryId=66

Friday, July 13, 2012

Stock News 2012: SM keeps Ortigas bid alive

English: Picture of the Greenhills Shopping Center (Photo credit: Wikipedia)The giant conglomerate headed by the country’s richest man says its offer for the 34 percent stake held by British banking giant HSBC in the holding company that owns the 16-hectare Greenhills shopping complex is still on the table despite a strategic alliance entered into by some members of the Ortigas family with Ayala Land Inc. (ALI).

On the sidelines of the signing of a three-year branding partnership between PLDT and SM’s newly established events venue Mall of Asia, SM Investments Corp. (SMIC) director Hans Sy said: “The offer still stays. We’re waiting for formal discussions. We have placed an offer which they have acknowledged. The offer is for the whole 34 percent stake held by HSBC.”

The Ortigas family exercised its right of first refusal over HSBC’s stake in OCLP Holdings Inc. in a deal valued at P11 billion. A group led by Ignacio R. Ortigas entered into a partnership with ALI to participate in the development of various properties owned by the landed Ortigas family, which include large residential, office, retail and hotel components.

ALI earlier said it had the backing of majority of the Ortigas family members, which should give it a foothold in Ortigas. It believes that its strategic partnership would gain overall management control of the private holding firm.

Sy said that while they are still waiting for the Ortigas family’s reply, they prefer to have control of the company but can “ adjust depending on the outcome of negotiations.”

ALI and SMIC, however, have yet to wait for the expiration of the lock-up period imposed on buyers for HSBC’s stake before they could own a stake in Ortigas & Co.

The Sy family was the first to make a pitch for HSBC’s stake in the Ortigas-led holding firm but the Ortigas family members eventually decided to buy out HSBC’s stake. In April, the Sy family said it was close to acquiring a controlling stake in OCLP Holdings, which would allow the SM group to capture the biggest share of the retail market in the burgeoning Ortigas-Pasig-Mandaluyong area.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.

Aside from the Greenhills shopping center, the group’s retail portfolio also includes the 18-hectare Tiendesitas in Pasig, residential development located on a 12-hectare property in Calle Industria in Bagumbayan in Quezon City, and the P25-billion Capitol Commons, which will rise on a 10-hectare property, which was previously occupied by the Rizal Provincial Capitol.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=826772

Monday, July 9, 2012

Stock News 2012: Leisure & Resorts World to invest P3 B in Sy-led casino venture

Las Vegas Strip (Photo credit: Wikipedia)
Leisure & Resorts World Corp. (LRWC) will invest as much as P3 billion in a $1 billion casino venture with Sy-led upscale leisure developer Belle Corp. and Macau casino firm Melco Crown Entertainment.

LRWC turned over to Melco the task of managing and operating the integrated casino and hotel complex Belle is building within the 100-hectare Entertainment City along Manila Bay, in exchange for a share in the project’s earnings.

LRWC was originally supposed to manage the casino and split EBITDA (earnings before interest, taxes, depreciation and amortization) evenly with Belle for a 10-year time frame. Belle and LRWC, however, decided to amend their earlier arrangement to make way for the entry of Melco.

Sources said LRWC is likely to get a maximum 30 percent share of the lease rental payments to be made by Melco to Belle for the casino property.

Aside from that, LRWC is expected to get up to 15 percent of the casino’s revenues.

Sources said LRWC would invest up to P3 billion in the entertainment complex, which will come from a combination of cash and debt.

LRWC was tapped by Belle in 2011 to handle the gaming component of the integrated resort given the latter’s lack of gambling experience. Formerly Atlas Fertilizer Corp., LRWC operates professional bingo and interactives games licensing at the Cagayan Economic Zone Authority.

The Sy family’s flagship company SM Investments Corp. is involved in five core businesses – retail merchandising, mall operations, property, banking and hotel and leisure.

Belle was initially looking at teaming up with US-based Harrah’s Entertainment Inc., which owns over 50 casinos under the Bally’s, Caesars, Horseshoe and Rio brand names but talks bogged down. Belle eventually picked LRWC as its partner for the project.

The huge financing requirement and the Philippine Amusement & Gaming Corp.’s requirement for a minimum 800-room hotel to be in place before casinos could operate within the Entertainment City, hindered the development of the project, prompting Belle and LR to find a foreign strategic partner.

Belle may have found the perfect fit in Melco, which has placed a large bet on expanding to one of the world’s emerging casino markets. Melco expects to invest up to $580 million over the course of project.

The project, located in an area that is envisioned to become the Philippines’ version of the Las Vegas strip, would be Melco’s first outside Macau, where it operates the City of Dreams and Altira Macau casinos. The company is developing its third casino, Studio City, which is slated for opening in 2015.

Melco said it was entering the Philippine gaming market because the country is a popular tourist destination and close to major sources of tourists including South Korea, Taiwan, Japan and China.

Melco said it wanted to “take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seek new travel destinations and experiences.”

Gambling revenues in Philippines are forecast to grow from $1.3 billion in 2011 to $3 billion in 2015 once four new resorts are completed.

Three other groups with casino licenses in the Entertainment city include port tycoon Enrique Razon’s Bloomberry Resorts Corp., Travellers Group (a joint venture between Malaysian casino company Genting Hong Kong Ltd. and property tycoon Andrew Tan’s Alliance Global Group Inc.), and Universal Entertainment Corp. of controversial pachinko billionaire Kazuo Okada.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=825452

Thursday, July 5, 2012

Stock News 2012: Puregold finalizes S&R deal

Front of Puregold Dau taken from an angle. (Photo credit: Wikipedia)Puregold Price Club Inc. has completed the acquisition of 100 percent of S&R Membership Shopping club through a P16.5-billion share swap, effectively making the upscale retailer a wholly-owned Puregold subsidiary.

In a disclosure to the Philippine Stock Exchange, Puregold said Kareila Management Inc., the operator of S&R, has already issued the stock certificates in the name of Puregold.

Under the deal, Puregold acquired 1.7 million shares of Kareilla in exchange for 766.4 million shares of Puregold. Both firms are controlled by Chinese-Filipino businessman Lucio Co.

The Co family now owns 77 percent of Puregold’s outstanding shares.

The acquisition has allowed Co to consolidate his retailing businesses into a publicly-listed vehicle targeting all market segments and further strengthened the group’s leading position in the industry.

Puregold caters to the lower-income segment with a market share of 16 percent. On the other hand, S&R, which caters to the middle and upper class consumers, has a market share of 3.3 percent.

S&R has a total membership base of over 214,700 across the country. It operates six stores located in Bonifacio Global City, Congressional Ave. in Quezon City; Alabang, Muntinlupa; Aseana business park in Baclaran; San Fernando in Pampanga; and Mandaue City in Cebu.

Established in 2000 in partnership with Price Smart of the US, S&R was eventually acquired by the Co family in 2006.

To capitalize on the growing consumer needs of the mass market, Puregold recently acquired the Parco supermarket chain in a deal valued at around P760 million. The deal involved the purchse of 100 percent of the Gant Group of Companies, the holding company of the Ong family for the six subsidiaries operating the 19 branches of Parco supermarkets.

Of Parco’s total store network, 12 are located in Metro Manila, three in Bulacan and four in Rizal.

The purchase was in line with the Co family’s goal to double the number of its stores by 2015 as it expands into the untapped markets Metro Manila as well as in Visayas and Mindanao.

Puregold, which is now the country’s second biggest retailer next to the SM Group, intends to open 25 stores in 2012 and 2013.

http://www.philstar.com/Article.aspx?articleId=824059&publicationSubCategoryId=66

Tuesday, July 3, 2012

Stock News 2012: Top property developers remain keen on FTI

Official seal of City of Taguig (Photo credit: Wikipedia)
Top property developers Robinsons Land Corp., Empire East Land & Holdings Inc. and Century Properties Group remain interested in bidding for the 103-hectare Food Terminal Inc. property in Taguig City, which is among the big-ticket items that will be privatized by the Aquino administration this year.

In separate text messages, RLC, Century Properties and Empire East confirmed their interest in vying for one of the biggest industrial complexes in Metro Manila.

“Yes, definitely. We have always expressed our interest in it since the beginning,” said RLC president Frederick D. Go.

Century Properties chairman and founder Jose E.B. Antonio said: We earlier gave an unsolicited proposal. We’ll revisit it once we see the terms of reference.”

Empire East president Anthony Charlemagne C. Yu said the company remains open to bidding for the property, which is suitable for mixed-use development. “We’re waiting for guidelines and terms of reference to be released,” he said.

The Aquino government has put the FTI property back on the auction block after three failed biddings and three years of delay.

The government will release this week the invitation to bid which will include the parameters of sale such as the minimum target selling price and pre-qualified requirements. The transaction would be in cash payment.

Other major property developers like Ayala Land, SM Group and Filinvest Land have expessed interest in the FTI land, which is home to more than 300 companies.

The FTI property provides industrial and commercial lots for medium-to-long-term leases and industrial buildings with standard-sized stalls for office, warehouse or small scale processing operations.

http://www.philstar.com/Article.aspx?articleId=823383&publicationSubCategoryId=66

Monday, July 2, 2012

Stock News 2012: SM eyes FTI property

SM Prime Holdings (Photo credit: Wikipedia)
The SM conglomerate of mall and banking tycoon Henry Sy is keen on joining the auction for a large block in state-owned Food Terminal Inc. (FTI) in Taguig.

Bagging the 74-hectare property, which was subject to numerous delays, will allow the company to pursue more mixed-use developments, an executive said.

In a chance interview, Henry Sy Jr., vice-chairman and chief executive of SM Development Corp., told The STAR that the SM group will join the bidding for the FTI property.

“Of course,” Sy said when asked if the SM group is interested to bid for the property.

“I will be interested,” Sy said, adding that the conglomerate is just waiting for the bidding terms.

Early this month, the Department of Finance’s Privatization Management Office announced that 74 hectares of the 103-hectare FTI agro-industrial complex is up for sale anew following three years of delay and three failed biddings.

The government will retain the rest of the property for various purposes. FTI is one of the largest industrial complexes in Metro Manila and is currently home to more than 300 companies.

“That will be perfect for mixed-use (development),” Sy said.

Sy said SM Development, for its part, will build high-end but affordable condominium projects in the area.

Holding firm SM Investments Corp. has five core businesses -- retail (SM Retail Inc.), malls (SM Prime Holdings Inc.), banking (BDO Unibank Inc. and China Banking Corp.), property (SM Development) and hotel and entertainment (SM Hotels and Conventions Corp.).

“The 70-hectare lot is large enough for landbanking. This would give them more available lots to develop, thus opening opportunities for additional revenue streams,” said Freya B. Natividad, investment analyst at brokerage firm 2Trade-Asia.com.

However, the SM group could end up competing with Ayala Land Inc. of the Zobels, Empire East Land Holdings Inc. of property tycoon Andrew L. Tan, Filinvest Land Inc. of the Gotianuns and Robinsons Land Corp. of the Gokongweis who were reportedly interested for the prime property.

The government last year scrapped its plan to sell the property for at least P13 billion as it reappraised the property.

http://www.philstar.com/Article.aspx?articleId=823009&publicationSubCategoryId=66

Monday, June 11, 2012

Stock News 2012: SMIC earmarks P5 billion for hotel project

SM Investments Corporation (Photo credit: Wikipedia)
SM Investments Corp. (SMIC), the holding firm for the various business of the family of the country’s richest man Henry Sy, has earmarked almost P5 billion for the construction of two hotels under the Luxury brand.

Based on documents submitted to the Securities and Exchange Commission (SEC), SMIC has appropriated around P4.93 billion out of the total proceeds from its fixed-rate bond issue for two hotel projects to be built at the Mall of Asia complex and in Looc, Batangas.

A big chunk, or P3.4 billion, will go to Luxury City Hotel, an upscale hotel that will have approximately 400 rooms.

The balance of P1.53 billion will be channeled to the 400-room Luxury Hotel in Santelmo, Batangas. “This will be a resort,” said SMIC chief financial officer Jose Sio.

Sio said the design and costing are still being prepared.

SMIC’s hotels and convention centers segment is aiming to offer 1,000 hotel rooms by 2013.

The group is currently building the P750-million Park Inn Radisson Hotel in Davao City’s Lanang District, the first Park Inn Radisson in the Asia Pacific region.

Targeted for opening in the first quarter of 2013, the 204-room Park Inn hotel will be located within the 175,000-square meter mixed-use complex owned and developed by SMIC’s shopping mall subsidiary SM Prime Holdings Inc.

The Park Inn brand is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=815940

Friday, May 11, 2012

Stock News 2012: SM unit acquires Euro-Med subsidiary

Shaw Boulevard (looking east), Mandaluyong City, the Philippines (Photo credit: Wikipedia)SM Development Corp. (SMDC), the residential development arm of the Sy family’s listed holding firm SM Investments Corp., is acquiring a wholly-owned subsidiary of pharmaceutical firm Euro-Med Laboratories Inc. for P1.25 billion.

In a disclosure to the Philippine Stock Exchange, SMDC said it signed an agreement to take over 102 E. De Los Santos Realty Co., which owns two prime lots with a total area of 10,936 square meters located along EDSA in Mandaluyong City.

The transaction is expected to be completed within 36 months after the signing of the agreement, SMDC said.

102 EDSA recently obtained the Securities and Exchange Commission’s nod to raise its authorized capital from P1.5 million to P220 million.

The purchase is in line with the SM Group’s landbanking strategy as it hopes to further widen its geographical footprint and ensure a more solid platform for growth.

SMDC currently has a landbank of 85 hectares in Metro Manila and 113 hectares in the provinces.

For this year, SMDC is launching more than 70,000 new residential units worth around P37 billion.

Meanwhile, sister firm SM Land broke ground on the 15-story ThreeE-comCenter, the third installment of a four-structure premier business hub at Mall of Asia complex in Pasay City. The project is targeted for completion in the fourth quarter of 2014.

Interior designed by Miami-based firm Arquitectonica, ThreeE-com will make available a gross floor area of over 125,000 sqm and an estimated gross leasable area of 79,000 sqm.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=805707

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