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MANILA, Philippines – SM Investments Corp. (SM) nears closing its buy-in of MyTown’s minority stake this year.
SMIC hopes to get the minority stake of dormitory builder MyTown of Philippines Urban Living Solutions Inc. (PULS), which was established in 2012. The company is backed by BPI Capital Corporation and Mark Mobius’ Templeton Emerging Markets Group. In December 2015, the latter relayed convertible notes investment from Franklin Templeton to PULS.
MyTown specializes in for rent 10- to 20-square meter units near central business districts of Metro Manila. A unit houses a toilet and bath, office desk, kitchenette, and bank beds constructed ergonomically. In every MyTown building, amenities for tenants include KTV rooms, movie theater, roof deck, and game rooms. Rental starts at P4,800 every month.
MyTown targets employees who want to avoid endless traffic daily, especially young professionals in Metro Manila.
Philippine Competition Commission (PCC)’s approval is awaiting confirmation, Chief Finance Officer of SMIC, Jose Sio, claimed. The commendation is valued more than P1 billion of mergers and acquisitions. Sio anticipates to get PCC favor in two to three months.
The Chief Finance Officer claims that it should not take a month if it is not a large transaction. He remains optimistic citing similar transactions in Indonesia, Thailand, and China that only took a month.
Appealed by dormitory builder, MyTown’s concept, SMIC will serve as a strategic investor. Sio added that it will be new real property business.
SMIC purposely acquired only the minority stake of MyTown for the group would not be responsible of the business operations.
At present, MyTown targets 6,000 beds by 2018. Over 1,000 beds in five projects are now managed by the company. Construction of 1,400 beds in five more projects is ongoing.