SM unit acquires Euro-Med subsidiary

MANILA, Philippines - SM Development Corp. (SMDC), the residential development arm of the Sy family’s listed holding firm SM Investments Corp., is acquiring a wholly-owned subsidiary of pharmaceutical firm Euro-Med Laboratories Inc. for P1.25 billion.

In a disclosure to the Philippine Stock Exchange, SMDC said it signed an agreement to take over 102 E. De Los Santos Realty Co., which owns two prime lots with a total area of 10,936 square meters located along EDSA in Mandaluyong City.

The transaction is expected to be completed within 36 months after the signing of the agreement, SMDC said.

102 EDSA recently obtained the Securities and Exchange Commission’s nod to raise its authorized capital from P1.5 million to P220 million.

The purchase is in line with the SM Group’s landbanking strategy as it  hopes to further widen its geographical footprint and ensure a more solid platform for growth.  

SMDC currently has a landbank of 85 hectares in Metro Manila and 113 hectares in the provinces.

For this year, SMDC is launching more than 70,000 new residential units  worth around P37 billion.

Meanwhile, sister firm SM Land broke ground on the 15-story ThreeE-comCenter, the third installment of a four-structure premier business hub at Mall of Asia complex in Pasay City. The project is targeted for completion in the fourth quarter of 2014.

Interior designed by Miami-based firm Arquitectonica, ThreeE-com will make available a gross floor area of over 125,000 sqm and an estimated gross leasable area of 79,000 sqm.

SM Land has successfully captured a substantial share of the business process outsourcing (BPO) business with its OneE-comCenter and TwoE-comCenter developments.

In addition to these, SM Land has also developed build-to-suit BPO offices such as the two SM Cyber Makati buildings along Sen. Gil Puyat Ave., and SM Cyber Baguio.