Category: Real Estate

SM Cites Property Merger Benefits

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SM Vice Chairperson Teresita Sy-Coson

SM Investments Corporation (SM) highlighted the opportunities in real estate in the Philippines following its recent merger of property assets under mall developer now property conglomerate SM Prime Holdings, Inc. (SM Prime).

In a recent forum by the Fund Managers Association of the Philippines held at the SMX Convention Center in Taguig, SM officials cited the benefits of the landmark merger which was announced in 2013 that transformed SM Prime as one of the Southeast Asia’s largest property companies. SM Prime today has shopping malls, residences, offices, hotel and convention centers and leisure facilities.

 SM Vice Chairperson Teresita Sy-Coson said that the SM Group has been “particularly active” with developments across all its core businesses in banking, retail and property which is indicative of the Philippine economy’s growth story.

“The reason why we merged the residences, malls, hotel, commercial, leisure and other landbank under SM Prime was to create a property company that is strong and well positioned for the future,” Mrs. Coson said.

She added that SM continues to have faith in the growth of the Philippine property sector which is just emerging. “The strength of SM has always been to create and leverage synergies across all businesses and this merger does that for our property units. As a result, we can do larger and more long-term integrated master planned developments and more lifestyle cities,” Mrs. Coson added.

SM Prime Vice President for Finance Teresa Reyes-Agsalud meantime said that as a result of the merger, SM Prime is in a position to pursue its next phase of growth. SM Prime now has access to a significantly larger land bank of over 900 hectares and real estate assets of US$13.8 billion as of the end of December 2013.

“The bigger scale and enhanced capabilities will allow SM Prime to unlock revenue synergies within the group as well as pursue larger and more attractive opportunities in the market,” Agsalud said.

She said that part of the strategy of SM Prime is to develop more “lifestyle cities” similar to the 60-hectare Mall of Asia Complex in Pasay City which will optimize land where premiere malls currently stand.

SM Prime is eyeing to replicate such lifestyle cities in SM Clark in Pampanga where the company already has an existing mall; SM North EDSA; its rising development SM Seaside City in Cebu; and in SM Lanang Premier in Davao.

SM Prime is eyeing building a Park Inn hotel in Clark. SM North EDSA hosts call center operations in its Annex Building and is adjacent to Grass Residences while just across the road, SM Cyber West , which is already 100% pre-leased since last year, is scheduled for completion in 2014. SM Seaside City Cebu, which will open in 2015, sits on a 30-hectare lot and will house a 400,000 square meter mall to be followed by another SM Arena. SM Lanang Premier, which was opened in 2012 is next to Park Inn Hotel and includes an SMX Convention Center.

“We are convinced that by working together as one SM Prime significant value and synergies can be unlocked for all our stakeholders,” she said.

SM SVP for Investor Relations Corazon Guidote also cited the Mall of Asia Complex as a classic example of how commitment, taking a long-term position, proper planning and execution on a development can unlock significant value not just for shareholders but for the whole city of Pasay.

“When I joined SM, there was just the mall in MOA. Now you have the mall, SMX, the MOA Arena, and the offices and residences which are interrelated in terms of operations. These developments enhanced the value of the land in MOA by over 23 times since the late nineties even prior to the property merger,” Guidote said.

She also said that SM sees opportunities for growth in offices and hotels.

“For the offices, we will be increasing momentum through our E-com buildings. Initially the plan was to put up four but now the plan is to come up with five. For the hotels, we will be putting up more Park Inns. Davao is doing very well and it really suits the needs of the market at this time,” Guidote said.

“By holding on long-term and trying to optimize synergies within the group, that’s how we create value for shareholders,” Guidote added.

SM Creates Entertainment and Lifestyle Brand Powerhouse

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Fresh from its own merger of property assets, SM Prime Holdings, Inc. undertook another landmark consolidation move, this time of its lifestyle and entertainment businesses to create a portfolio of formidable brands under one roof.

SM Lifestyle Entertainment Incorporated or SMLEI is the lifestyle and entertainment solutions company operating under SM Prime which consists of 12 major brands related to movies, events, and leisure. It traces its roots to West Avenue Theatres Corporation or WATC which carries the SM Cinema brand. In a span of five years, WATC added brands like Snack Time, SM Tickets, e-Plus Tap to Pay and Mall of Asia Arena. And now under SM LEI, it welcomed WM Cinemas, the operator of fully digitized screens in Walter Mart malls, SM Bowling Center, SM Skating Rink and SM Science Center in a synergized circle of top-notch brands.

“This year, SM once again is responding to change with the foundation of SM Lifestyle Entertainment Incorporated, an evolution grounded from West Avenue Theatres Corporation’s already impressive and accomplished credentials but with more enticing offerings under its sleeve,” SM Prime President Hans T. Sy said.

“We are a lifestyle entertainment solutions company with movies playing in 267 screens in the country. We manage venues for events from 400 seating to 20,000 seating capacities that come with their own matching entry and ticketing system. We can serve you popcorn to fine dining and provide a venue for leisure activities on the ice or on the bowling lane. And all of these you can conveniently pay with our tap to pay system,” Edgar C. Tejerero, President of SM LEI said.

“With a bigger organization and 12 brands and growing, you can expect our nationwide reach and the great advantage of our synergy and as an organization under the SM Group,” Mr. Tejerero added. Known for its synergistic approach across its businesses, SM saw the opportunities and synergies of its core businesses with the lifestyle and entertainment sectors decades ago.

“My father, Henry Sy, Sr., wanted to sell shoes to every Filipino. That is where the business of SM was grounded – from my father’s dream and vision. After his endeavor became successful, windows of opportunities opened and paved the way to a bigger and a more diverse department store. Expansions were made to accommodate the growing business of SM, which included entertainment,” SM Prime Holdings President Hans T. Sy recounted.

Sy added that in fact, the SM Cinema, which opened in 1987 at the newly-constructed SM North EDSA, changed the conventional practice of Filipinos’ movie-watching.

“SM Cinema raised the bar and changed the lives of Filipino consumers. It reflected SM’s unwavering dedication to innovation. All innovations are propagated by change as it is the rhythm of life. Change, when reinforced by vision, determination and perseverance, can foster an undoubtedly thriving business,” Mr. Sy said.

SM LEI is also focused on customer satisfaction. Sy said that SM LEI’s commitment is in providing its patrons with value-for-money leisure and entertainment with strict dedication to quality of service and products. “These plus an adherence to ease-of-use and personalized accommodations to complement the Filipino lifestyle, the company shall very well in the future serve its mission-vision of being the largest, best managed lifestyle entertainment solutions company in South East Asia. As we find more ways to better service the Filipino, our steadfast commitment to bigger changes will forge ahead,” Mr. Sy said.

Our Roots, Our Homes: Planting Trees for A Greener Philippines

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Robinsons Homes’ CSR Campaign “Our Roots, Our Homes: Planting Trees for A Greener Philippines” has recently completed its 5th and 6th legs covering areas in Mindanao where Robinsons Homes’ Fresno Parkview and Montclair Highlands are located.

Fresno Parkview in Lumbia, Cagayan de Oro, is a 14 hectare Contemporary American-inspired garden neighborhood which offers residential lots complemented with amenities and facilities. Montclair Highlands, which is located minutes away from prestigious establishments like schools and churches, and hospitals is a favored residence in Buhangin, Davao City. Here, homeowners enjoy premium lifestyle amenities and facilities.

Over 200 Knife Acacia trees were planted by Robinsons Homes employees and local government officials. “As developers, we believe that we are responsible in keeping and maintaining a ‘green environment’ which our customers, the home owners, will enjoy and benefit for many, many years,” says Ms. Cora Ang Ley, Business Unit general manager for Robinsons Homes.

Robinsons Homes is one of the four residential brands of Robinsons Land Corporation, awarded as Euromoney’s Overall Best Managed Company in the Philippines for two years in a row, offering choice lots with housing option in master planned, gated subdivisions located in key cities and provinces nationwide. With over 15 years of real estate experience, Robinsons Homes continues its mission of bringing the good life to each Filipino. Start the good life today. To know more about Fresno Parkview and Montclair Highlands, call (+632) 397-0358 / 0932-8RHomes (0932-8746637) or visit the website at www.robinsonshomes.com

SM, Subsidiaries Garner Awards on Corporate Governance

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(Clockwise from top left) SM Prime Holdings, Inc. (SM Prime) President Hans Sy with CG Asia Publisher and Managing Director Aldrin Monsod; SM Investments Corp. Chief Finance Officer Jose Sio and Mr. Monsod; BDO EVP and Head of Central Operations Group Dennis Velasquez, BDO SVP for Investor Relations and Corporate Planning Luis Reyes, Jr. and Mr. Monsod; and SM Prime EVP and CFO Jeffrey Lim

Leading Philippine conglomerate SM Investments Corporation (SM) and its subsidiaries garnered awards on good corporate governance from Hong Kong publication Corporate Governance Asia (CG Asia).

CG Asia is the most authoritative journal on Corporate Governance in the region. Published quarterly, it provides news and analysis on corporate governance issues, boardroom practices and shareholder activism since seeing print in 2002. CG Asia is read by 9,000 executives from Asia’s major public companies, regulators, institutional investors, fund managers, lawyers, accountants, academics, government financial institutions.

The 4th Asian Excellence Recognition Awards are designed to recognize excellence in investor communications, business ethics, corporate social responsibility (CSR), environmental practices and financial performance. The recognition is based on scores from the data submitted by the publication’s readers and from interviews conducted with investors. These accolades are also for people who possess strong leadership in guiding the board of directors and the company’s management in growing/expanding the business, and at the same time in upholding the highest ethics in business practices. The awards also highlighted outstanding executive achievements in investor relations.

The publication cited SM and its subsidiaries, BDO Unibank, Inc. and SM Prime Holdings, Inc. during an awarding ceremony held on April 3, 2014 at the Renaissance Harbour View Hotel in Hong Kong.

The multiple awards received by the SM Group are as follows:

Asia’s Best CEO (Investor Relations)
Teresita T. Sy-Coson, Chairperson- BDO Unibank, Inc.
Hans T. Sy, CEO- SM Prime Holdings, Inc.

Asia’s Best CFO (Investor Relations)
Jose T. Sio, Executive Vice President and Chief Finance Officer- SM
Jeffrey C. Lim, Executive Vice President and Chief Finance Officer- SM Prime

SM Investments Corporation
-Best Corporate Communications Team
-Best CSR
-Best Investor Relations Company
-Best Investor Relations Professional- Corazon P. Guidote

BDO Unibank, Inc.
-Best Corporate Communications Team
-Best CSR
-Best Investor Relations Company
-Best Investor Relations Professional- Luis Reyes, Jr.

SM Prime Holdings
-Best Investor Relations Company
-Best Environmental Responsibility

Housing developers eye 1M new homes by 2016

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The Subdivision and Housing Developers Association (SHDA) is working to meet the first milestone of the Housing Industry Roadmap, prioritizing the development of one million new homes by 2016.

SHDA, the country’s largest housing development association , said the past year had seen awareness rise on housing problems especially in the face of national calamities.

SHDA is focused on the national housing backlog currently estimated at 3.9 million units. Without intervention, developers see the country overwhelmed with a 6.5 million housing backlog by 2030.

Newly inducted SHDA president Ricky Celis said the group remained committed to the thrusts of the Housing Industry Roadmap, prioritizing production, policy framework, affordability, financing and the legislative agenda.

“Increased housing production with government support will see us moving closer to our goals. We’re looking forward to a year of increasing our multi-sectoral partnerships with other government offices, key shelter agencies, real estate groups and other corporate enterprises,” he said.

Under its production priorities, SHDA aims to increase and sustain production capacity to 12 percent growth per year. This will mean moving to standardize costs of common items and supplier agreements. SHDA will also look into using new building technology and systems to reduce construction time and cost.

In terms of improving housing affordability, SHDA is working closely with government to gain comprehensive and targeted government housing subsidy. Its efforts include pushing for the accreditation of socialized low-rise buildings for informal settler families and supporting the inclusion of mass housing in this year’s Investment Priorities Plan.

Celis said SHDA would also seek nationwide engagement of its 200-strong members and chapters, and organize more chapters across the country. “There are housing developers everywhere who share our vision of every Filipino family living with dignity in their own home, regardless of their economic status. We provide the housing industry an opportunity to speak with one voice, to learn from each other and to work together towards that vision,” he added.

Another priority for the group has been the establishment of a databank of industry statistics and figures. Government agencies and local government units have traditionally been the only resource for reliable housing industry figures. SHDA aims to build an accurate and up-to-date databank from which housing developers can refer to in planning and developing areas.

Among its first reports to be released is on housing starts, or the estimated number of construction projects based on building permits. SHDA is set to release its 2013 report on housing starts this quarter.