A UNIT of SBS Philippines Corp. acquired a five-hectare parcel of land along JP Rizal Street in Mandaluyong City.
In a disclosure to the stock exchange on Tuesday, SBS said its associate company Cleon Phils. Holdings, Corp. struck a deal for the purchase of the lot, which traverses Barangays Vergara and Namayan in Mandaluyong.
SBS noted Cleon’s acquisition, set to close this month, is intended for investment purposes.
“The investment is in furtherance of the diversification and investment strategy of the SBS Group to invest in small ownership stake in companies investing in real properties to have a more diversified interest in different property holdings at a lower capital requirement and risk exposure to the company,” SBS said in the disclosure.
SBS’ stake in Cleon Phils. is at 37.5%.
Other than Cleon Phils., the company also holds minority stakes in Lakerfield Philippine Holdings Corp. (37.5%), Ayschester Holdings Corp. (25%), and I Bonding Holdings Corp. (17%).
With these investments, SBS established a wholly owned subsidiary called SBS Holdings and Enterprises Corp. as a holding firm for its property-related acquisitions.
Incorporated in 2001 originally as Sytengco Philippines Corp., SBS’ core business is in trading and warehouse distribution of chemical products. The company markets chemical products via direct selling as well as by wholesale basis. It has a total of five warehouse facilities, with two located in Quezon City, and one each in Mandaluyong City, Malabon City, and Marilao, Bulacan.
SBS’ attributable profit for the first half of 2017 dropped to P34.97 million, 94% lower than what it generated in the same period a year ago.
Shares in SBS shed three centavos or 0.48% to close at P6.20 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia
