LISTED property developer Shang Properties Inc. is looking to venture into the international market by creating a new subsidiary that will explore investment opportunities abroad.
In a disclosure to the Philippine Stock Exchange on Thursday, Shang Properties said its board of directors has approved resolutions authorizing the company to establish “a wholly owned non-resident foreign corporation.”
The new corporation will be created to “explore possible off-shore investment opportunities aligned with the Issuer’s business objectives/purposes,” the company said.
It did not disclose where the corporation will be established.
Shang Properties, the property development arm in the Philippines of Singapore-based Kuok Group, currently has 12 subsidiaries in the country engaged in property investment and development, real estate management, leasing, and mall and car park operations.
These include Shangri-La Plaza Corporation; SPI Parking Services, Inc.; Shang Properties Realty Corporation; EPHI Logistics Holdings, Inc.; Shang Global City Holdings, Inc.; Shang Global City Properties, Inc.; Shang Fort Bonifacio Holdings, Inc.; Shang Property Developers, Inc.; Shang Property Management Services Corporation; KSA Realty Corporation; The Rise Development Company, Inc.; and Shang Wack Wack Properties, Inc.
Earlier this year, Shang Properties raised its stake in subsidiary KSA Realty by acquiring 207,082 shares of Ocmador Philippines B.V. in KSA, representing an 85.77 percent stake, for P1.42 billion.
The transaction raised Shang Properties’ equity in KSA from 52.9 percent to 70 percent.
Shang Properties reported a net income of P1.25 billion in the first six months of this year, down 5.31 percent from a net income of P1.25 billion in the same period last year.
For 2016, Shang Properties has programmed P4 billion in capital expenditures as it focuses on the residential market.