SM Investments eyes ATO property in Iloilo

SM Investments Corp. (SMIC), the investment holding company of retail tycoon Henry Sy, is likely to bid for the 58.9-hectare property owned by the Air Transportation Office (ATO) in Manduriao, Iloilo City.

ATO Iloilo area manager Alan Java said SMIC is reportedly interested in acquiring the property since its shopping mall is located adjacent to the old airport area.

The property will be vacated once the new airport in the boundary of Sta. Barbara and Cabatuan starts operations.

Aside from SMIC, other groups that have reportedly signified interest to acquire the ATO property are Ayala Corp., tobacco and beer magnate Lucio Tan, and the JG Summit Group of tycoon John Gokongwei. Java however said all are just prospective buyers since the bidding process still has to commence.

The government has created a taskforce to oversee the privatization of the ATO property.

Its members are representatives from the Department of Finance, Department of Transportation and Communication, Department of Justice, Department of Budget and Management, Commission on Audit, and Iloilo City Mayor Jerry Trenas.

Aside from shopping malls, SMIC has interests in property development, banking and financial services, leisure and tourism and real estate.

SMIC is setting aside between P10 billion to P12 billion for its capital expenditures this year to bankroll the expansion of its shopping mall, banking and call center operations.

Of this amount, P4 billion will find the construction of new shopping malls to further strengthen its dominant foothold in the industry.

Another P1.5 billion has been earmarked for the establishment of a 10-storey building for call center companies that have been looking at the Philippines for expansion. The building will be located at the SM Group’s biggest mall to date, the Mall of Asia, which sits on a 60-hectare property overlooking Manila Bay.

As the country’s biggest shopping and tourism destination, the Mall of Asia will incorporate hotel, leisure and entertainment facilities, and residential and office condominiums. It is slated for opening in May.

Plans are also underway for the development of Hamino Cove, a beach resort to rise in Batangas.

Apart from Mall of Asia, four other malls are up for completion or opening this year. These include SM City Lipa (Batangas), SM City Sta. Rosa, Laguna, SM City Bacolod and SM Subic. Also expected for opening this year is the expansion of the SM City North shopping complex.

SMIC expects to post a 25-percent growth in its net income for the first nine months of its fiscal year ending March 2006, driven by the continued strong performance of its shopping mall and banking units.

From April to Sept. 2005, SMIC reported a net profit of P2.7 billion, an increase of 24.4 percent from P2.2 billion posted a year earlier.