SMIC acquires property firms

MANILA, Philippines - The family of retail tycoon Henry Sy is ramping up its presence in Taguig City with the purchase of 10 companies that own  properties within the E-Square Information Technology Park, a special economic zone located in Bonifacio Global City.

In a disclosure to the Philippine Stock Exchange, SM Investments Corp., the investment holding firm of the Sy family, said it entered into a deal with CPI Asia Ten B.V. for the acquisition of the property firms.

One of the companies is Crescent Park 14-678 Property Holdings which is registered with the Philippine Economic Zone Authority (PEZA) as an ecozone facilities enterprise at the E-Square IT Park. 

SMIC chief financial officer Jose Sio said the purchase is part of the SM Group’s investment strategy as it aims to spur further growth amid a booming local economy.

“This is part of SMIC’s expansion for future growth and expansion of its recurring income base,” Sio said in a text message.

He declined to give more details as the value of the transaction is still being hammered out among the concerned parties.

Securities and Exchange Commission documents show that businessmen Carlos Rufino and Jacques Dupasquier are among the incorporators of  Cresent Park 14-678.  The company’s main purpose is to  buy and acquire or lease lands.

PEZA-accredited companies are entitled to avail of tax perks and other benefits.

Located in the residential and mixed-use zone area, the E-Square IT Park has a total of 1,585 to 11,132 square meters lot size and 8-12 floor area ratio. It includes the 2.7-hectare Crescent West Park. 

Analysts said SMIC’s purchase of the various property firms owned by CPI Asia Ten B.V. will expand the group’s presence in Fort Bonifacio, which is currently dominated by its perennial rival, Ayala Land Inc.

The SM Group’s presence in Bonifacio Global City is through SM Aura, a high-end shopping mall located along Mckinley Parkway and C5 Road corner 26th St. BGC near Market! Market! owned by ALI.

The Sy family is currently in the process of consolidating its property units and assets under SM Prime Holdings Inc. that will create the country’s largest developer.  The consolidation is worth around P280 billion.

Under the merger, SM Land will be combined with SM Prime, which in turn will acquire other assets of its parent. SM Prime is the country’s biggest shopping mall operator

The merger will allow SM Prime to pursue large-scale  projects, backed by the group’s experience in developing malls, homes, hotels, resorts and offices.

The SM Group is also  engaged in retail, financial services and gaming. It likewise has interests in mining, infrastructure and geothermal energy.