MANILA, Philippines - Listed chemical trading firm SBS Philippines Corp. has taken the initial step in its diversification into the property sector after acquiring a stake in a real estate firm for close to P500 million.
SBS said its unit SBS Holdings and Enterprises Corp. has purchased 150,000 common shares of Goldchester Holdings Corp., representing a 17-percent equity stake in the company, for P480.8 million.
“The investment is an excellent addition to the SBS Group property investment portfolio as it presents a rare opportunity to acquire a stake in high quality real estate investment in the Quezon City’s western area with an attractive potential return of investment for the company in the medium term,” SBS said.
Goldchester Holdings owns a 3.1-hectare prime real estate property along Balintawak in Quezon City, close to the LRT transit convergence point, and Skyway extension and the Cloverleaf Balintawak projects.
Last March, SBS announced its board of directors approved the firm’s diversification to include acquiring or participating in investments in property related assets.
The move, it said, is intended to provide balance to counteract some of the fluctuations in the chemical trading business and at the same time grow and diversify the company’s income streams.