Suntrust unit to offer strategic asset management services

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Suntrust Home Developers Inc., an associated company of Megaworld Corporation, plans to add another revenue stream to its operations by entering the strategic asset management business through subsidiary, the company said on Tuesday.

At company’s annual stockholders’ meeting, Suntrust chairman Ferdinand Masi told shareholders that its wholly-owned subsidiary, First Oceanic Property Management Inc. (FOPMI), is considering adding another business segment aside from its property management services.

“FOPMI is looking at another opportunity for growth to complement its property management business through an additional service known as strategic asset management,” Masi said.

Strategic asset management is a service that most property consultancy firms offer.


Jones Lang Lasalle-UK described this service as “Expert advice on maximizing asset performance and development delivery.” It added that the service is responsible for driving the performance of assets under management across a property portfolio.

In addition, Colliers International-Netherlands noted the goal of strategic asset management is to ensure the maximum performance of a property portfolio through timely anticipation of changing market conditions.

“This [strategic asset management]involves developing a plan to preserve and enhance the value of the residential or office building and its facilities and ensuring that this plan is carried out properly,” Masi told stockholders.

At present, Suntrust does not have any business operations and is not offering any product or service, but is generating revenues from the operations of FOPMI.

FOPMI is engaged in the property management of residential and office buildings as well as private estates in Metro Manila, Iloilo, and Cebu.

In the first half of 2016, Suntrust reported a 20.82 percent increase in its total revenue to P205.9 million from the P170.4 million posted in the same period a year ago. This was mostly contributed by management fees, service income and rental income generated from the operations of FOPMI and its subsidiary CityLink Coach Services Inc., which provides transport and shuttle rental services.

“The increase in management fees is due to the growth of FOPMI by managing more properties,” Masi said during the firm’s stockholders meeting.

Masi noted that at present, FOPMI manages around 100 residential and Business Process Outsourcing (BPO) office accounts spread over 220 managed buildings. This translates to almost six million square meters according to Masi.

“…we expect this to grow as more office and residential buildings are completed for turnover,” Masi expressed.
With the firm adding strategic asset management services under FOPMI, Masi noted that this would add another revenue stream for the company.

“So we’re looking at this option as another revenue stream as we anticipate more projects and developments will be turned over to us,” Masi told shareholders.

Aside from managing property assets, the new business segment would also help enhance the values of buildings that have deteriorated over the years, according to Masi.

“And we saw that if we could manage them well, if we could preserve the value, if we could enhance the value–then in the future, these assets can be more valuable,” the chairman said.

In the first half of the year, Suntrust reported a 61.57 percent increase in its net profit to P20.88 million from the P12.92 million recorded in the previous year.

Suntrust Home Developers Inc. is an associate of Megaworld Corporation. As of end September 2016, Megaworld has a 42.48 stake in the firm.

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