SM Investments eyes expansion outside NCR

SY-LED conglomerate SM Investments Corp. (SMIC) said Friday it plans to capitalize on growth opportunities outside the National Capital Region (NCR) to boost its core businesses and portfolio investments.

“There is a lot of potential, especially in Luzon outside of the NCR, as well as in [the] Visayas and Mindanao, where there is still a need to access modern trade,” SMIC President and Chief Executive Officer Frederic DyBuncio said in a statement.

“And it’s not just for our core businesses of retail, banking, and property but also for our portfolio companies,” he added.

SMIC is looking to inject more investments in the logistics sector through its portfolio companies, 2GO Group Inc. and Airspeed, adding that these efforts would help stimulate economic activity in provincial areas.

“Logistics plays a crucial role in the delivery of goods and services to the people, especially with increased economic action,” DyBuncio said.

Last month, the group’s bakery chain Goldilocks Bakeshop Inc. announced plans to launch 60 new stores this year, with the goal of broadening its reach and serving more customers across the Philippines.

Around 40 percent of Goldilocks’ new stores are currently located in the Visayas and Mindanao.

SMIC added that its core businesses would also continue to “expand extensively” in regional markets, noting that major cities typically demonstrated doubledigit economic growth.

“We view the regions as a bright spot for growth with the diverse products and services that we offer to consumers. We believe that there’s so many opportunities for us to be able to provide better services to the Filipino people in the regions,” DyBuncio said.

SMIC last year opened 419 new retail outlets, around 89 percent of which were located in provincial areas, while its property arm SM Prime Holdings Inc. launched three shopping centers in Bataan, Laguna, and Batangas.

Its residential property development arm, SM Development Corp., is currently building 20 projects outside of the capital, including in Pampanga, Bulacan, Rizal, Cavite, Laguna, Cagayan de Oro, Davao, Iloilo, and Bacolod.

In banking, BDO Unibank Inc. continues to bolster its regional presence through its community bank, BDO Network Bank, while China Banking Corp. is widening its services through its subsidiary, China Bank Savings.

SM Investments shares closed down 1.41 percent to P981 each on Friday.

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