SBS plans to invest in realty companies

Chemical trading firm SBS Philippines Corporation is planning to invest R151.9 million in small ownership stake in companies investing in real properties.

In a disclosure to the Philippine Stock Exchange, SBS said this is in line with its investment strategy to have a more diversified interests in different property holdings at a lower capital requirement and risk exposure to the Company.

SBS said it has subscribed to new shares for a minority ownership stake in affiliate investment holding companies that have been set up to serve as vehicles for investment in real estate assets.

These “co-investment” rights of SBS involve a 37 percent shareholding interests in Lakerfield Philippine Holdings Corp., 25 percent shareholding interests in Ayschester Holdings Corp., 37.25 percent shareholding interests in Cleon Phils. Holdings Corp., and 17 percent shareholding interests in I Bonding Holdings Corporation.

“Such small stake investments allows the Company to participate in wider investment opportunities,” SBS said.

Lakerfield Philippine Holdings Corp. is owner of a 1.38 hectare parcel of land located in Mandaluyong City while Ayschester Holdings Corporation is owner of 1,776 square meters lot located along EDSA.

Cleon Phils. Holding Corp. and I Bonding Holdings Corporation are still in preliminary discussion on a potential property acquisition.

SBS Philippines Corporation posted double digit sales growth in the first nine months of 2016 and reported sales of R776.1 million, up by 11.6 percent from R695.2 million of 2015 comparable period. (JAL)