SBS Philippines widens land bank

MANILA, Philippines — SBS Philippines Corp. has signed an agreement to acquire a prime property in Mandaluyong City.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, SBS said its associate company Cleon Philippines Holdings Corp. is acquiring a 54,000 square meter property situated in barangays Vergara and Namayan in Mandaluyong City.

SBS Philippines owns a 37.25 percent equity stake in Cleon Phils. Holdings.

“The investment is in furtherance of the diversification and investment strategy of the SBS Group to invest in small ownership stake in companies investing in real properties to have a more diversified interest in different property holdings at a lower capital requirement and risk exposure to the company,” SBS said.

Last March, the company announced plans to diversify its business to include acquiring or participating in investments in property-related assets.

The diversification 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 firm’s income streams.

SBS said its chemical trading business has been highly successful that, over time, the company was able to invest its surplus funds to take advantage of opportunities in the real estate market and experience a significant improvement in values of its real estate investments.

Last year, the company unlocked the value of certain long-term investments in property related holdings which were held for capital growth and completed with a significant one-off gain from the disposal of such investments assets in the amount of P858.8 million.

SBS is an importer, wholesaler and distributor of a wide range of chemical products serving a diverse set of industries which includes food and beverage, industrial and detergents, feeds and agriculture, water treatment, pharmaceuticals and personal care, building and constructions and mining and minerals.

As a full line chemical distribution company, it provides for a one-stop-shop business solution for various chemical requirements of its market customers.