SBS Philippines Corp. is strengthening its foray into real estate with the incorporation of a new company to be used for the acquisition of a commercial property in Mandaluyong City.
In a statement on Wednesday, the listed firm said its wholly owned subsidiary SBS Holdings and Enterprises Corporation (SHEC) has incorporated Joine Holdings Corp., where it holds a 22% stake.
The newly formed company will complete the deal for the purchase of a 2,371-square meter property (sq.m.) in Barangay Wack Wack, Mandaluyong City. This lies within the vicinity of the Philippine Overseas Employment Administration and Robinsons Galleria along EDSA.
The venture is part of the company’s strategy to increase its presence in real estate by acquiring minority interests in various firms with property investments.
“This investment strategy will allow the SBS Group to grow and capture opportunities presented in the robust real property sector. The property market growth in the Philippines has led a sustainable and long-term value proposition due to the optimism of the prospects of Philippine economy,” the company said in a statement.
SHEC recently completed its acquisition of 54,598.17 sq.m. lot along J.P. Rizal in Mandaluyong City through Cleon Phils. Holdings Corp. SBS holds a 37.25% equity stake in Cleon.
The SBS group’s other property investments include lots in Mandaluyong, Quezon City, Cavite and Bacolod City.
“Given the growth prospects of the property related investment and businesses, SBS Group intends to continue to seek opportunities to enrich its property investment portfolio,” the company said.
SBS’ net income attributable to the parent dropped 94% year on year to P34.97 million.
Shares in SBS lost a centavo or 0.17% to close at P6.03 each at the Philippine Stock Exchange on Wednesday. – Arra B. Francia
