LISTED chemical trader and distributor SBS Philippines Corp. has invested P151.9 million in various real property investment firms in line with its strategy to have diversified interests in small companies that invest in real properties.
In a disclosure to the Philippine Stock Exchange on Monday, SBS said it acquired “co-investment rights” via minority ownership stakes in various investment companies with real property holdings for a total outlay of P151.9 million.
These investments include a 37-percent stake in Lakerfield Philippine Holdings Corp., 25 percent stake in Ayschester Holdings Corp., 37.25 percent stake in Cleon Phils. Holdings Corp., and 17 percent stake in I Bonding Holdings Corp.
“The company is pleased to announce that in line with its investment strategy to have a more diversified interests in different property holdings at a lower capital requirement and risk exposure, the company has deemed it beneficial to invest in small ownership stake in companies investing in real properties,” SBS said.
“Such small stake investments allow the company to participate in wider investment opportunities,” it added.
The investments in these property vehicles are still subject to the approval of SBS shareholders in its next stockholders meeting.
In view of these investments, SBS said previous lease arrangements for the Paco and Ayala properties “will no longer be continued in 2017 as a result of changes in the business requirements of the contract parties.”
Lakerfield Philippines is the owner of a 1.38-hectare land in Mandaluyong City, while Ayschester Holdings owns a 1,776-square-meter lot along EDSA. Cleon and I Bonding are still in preliminary discussions on potential property acquisitions.
SBS said it will have to approve each investment transaction under the property vehicles first —involving acquisition and disposal of investments, financing and mortgage deals—to ensure control in operations in these affiliate companies and to avoid any conflict of interests with directors and officers.
SBS is one of the major chemical trader-distributors in the Philippines supplying more than 1,800 customers with over 3,000 chemical products sourced from more than 500 suppliers. It supplies to customers in various industries such as food ingredients, industrial, feeds and veterinary care, pharmaceutical, and personal care and cosmetics.
The company also has a network of 15 warehouse facilities in five different sites in greater Manila area and Bulacan Province, amounting to about 46,000 square meters of combined floor space and a storage capacity exceeding 18,000 metric tons.