SMIC consolidating property assets under Shoemart Inc

SM Investments Corp. (SMIC), the listed holding firm of retail tycoon Henry Sy, is consolidating its property assets under 65 percent-owned unit Shoemart Inc.

In line with this, Shoemart will raise its capital stock from P500 million to P1 billion.  Of the increase, 25 percent has been subscribed by SMIC and out of the said subscription, 1.518 billion shares of SM Development Corp. will be used as paid-up capital for 385,000 shares of Shoemart Inc.

SMIC said the move is still subject to the approval of the Securities and Exchange Commission, the Bureau of Internal Revenue, and other appropriate government agencies.

SMIC earlier formed a new division, SM Investments Property Group, to set the direction and implement SMIC’s plan and vision to secure leadership across three major real estate sectors which include  residential and condominium development, commercial development, and leisure and tourism.

The move is in line with the group’s strategy to solidify its businesses and to capitalize on its strength in the mall and retail sectors.

SMIC is using its landbank to lay the groundwork for various real estate projects, targetting key market segments, including overseas Filipino workers, the booming business process outsourcing sector, and the rising number of tourists, both domestic and foreign.

The company plans to take advantage of the growing number of SM shopping malls which may serve as the anchor for the conglomerate’s other property ventures.

Subsidiary SMDC is building several residential condominium buildings – Mezza Residences at SM Centerpoint and Chatteau Elysee at SM City Bicutan.

Another SMIC subsidiary, Highlands Prime  Inc., is boosting its line-up of exclusive out-of-town residential villas. The Tagaytay Highlands is expanding its offerings with Woodridge Park, a residential condominium development inspired by the mountain resorts of the  Colorado region in the US.

For its long-term venture into leisure and tourism development, SMIC is embarking on the large-scale development of Hamilo Coast, a 5,700-hectare terrain, comprising 13 coves along the coast of the South China Sea in Batangas. 

The conglomerate’s venture into leisure and tourism is aimed at tapping the projected increase in tourist arrivals in the country, and rides on the government’s strategy to position the Philippines as one of Asia’s leading tourist destinations.

The property group’s development and tourism and other property projects are expected to become an equally important contributor to profit growth for SMIC in the next few years.