Sy forms P5-B holding company

The family of retail tycoon Henry Sy has formed a P5-billion holding company that will be used as the group’s corporate vehicle to raise funds for its capital requirements.

Based on documents filed with the Securities and Exchange Commission (SEC), the new corporation called Syntrix Holdings Inc. will acquire and dispose of all properties including bonds, debentures, promissory notes, shares of capital stock or other securities or obligations created or issued by any company.

Documents also show that Syntrix may borrow or raise money through the issuance of bonds, promissory notes and other evidences of indebtedness.

The P5-billion capitalization consists of two billion common shares and three billion redeemable preferred shares at a par value of P1 each.

Of this amount, P1.25 billion has been subscribed and P312.5-million paid.

Listed as incorporator-directors of Syntrix include Henry Sy Sr., Felicidad Sy, Teresita Sy, Henry Sy Jr., Hans Sy, Elizabeth Sy, Herbert Sy, and Harley Sy.

The Sy group, through its listed investment holding company SM Investments Corp., has interests in tourism, department store operations, financial services, and real estate development.

The SM Group’s retailing business began in 1945 when its founder, Henry Sy Sr. first established a small shoe store in Carriedo, Metro Manila. The original Shoe Mart, incorporated in March 1960, was the Sy family’s first major step into the retailing business.

The Sy family owns and operates 25 malls nationwide and expects to open two or three more each year through 2008. After opening its biggest mall to date — Mall of Asia — the group is expected to open SM City Clark, SM City Lipa, SM Supercenter Frontera Verde and SM City North Edsa Annex-3, which would bring to 3.5 million square meters the group’s total gross floor area.

The group has also invaded the booming China market with a mall in Xiamen, and it is opening two more malls in the mainland over the next two years.

The Sys, acknowledged as the pioneer of megamalls, are diversifying into commercial real estate and tourist resorts — sectors which they believe have significant opportunities for growth as the Philippines becomes a more attractive tourist destination.

Banking on the improving property sector, SMIC earlier set up a new division SM Investments Property Group, solely to cater to its real estate development projects.

The move is in line with the group’s strategy to solidify its businesses and to capitalize on its strength in the mall and retail businesses.

SMIC is using its land bank to lay the groundwork for various real estate projects, targetting key market segments, including overseas Filipino workers, the booming business process outsourcing sector, and the rising number of tourists, both domestic and foreign.

For its long-term venture into leisure and tourism development, SMIC is embarking on the large-scale development of Hamilo Coast, a 5,700-hectare terrain, comprising 13 coves along the coast of the South China Sea.