Conglomerate SM Investments Corp. said it completed the acquisition of a 61.21-percent stake in Philippine Urban Living Solutions Inc., the operator of dormitory buildings under “MyTown” brand.
SMIC said the acquisition would enable it to capture growth opportunities in the fast growing dormitel segment of the property sector.
The conglomerate did not say how much it spent to acquire the controlling stake in PULS, but said the amount was less than 10 percent of SMIC’s net book value.
SMIC obtained the approval of the Philippine Competition Commission to proceed to the acquisition of a majority stake in PULS, as the transaction would not result in substantial lessening of competition in the relevant market.
PCC, the country’s anti-trust body, is mandated under the Philippine Competition Act to review mergers and acquisitions to ensure that these deals will not prejudice the interest of consumers. It review deals worth P1 billion and up.
Established in 2012, PULS owns, develops and operates dormitory spaces for rent.
Aimed at young professionals, MyTown’s dormitories are equipped with attractive amenities and targeted retail facilities that allows its tenants to save on travel time and transportation cost.
It owns and manages five buildings in Makati and Bonifacio Global City with over 1,000 beds.
Room sizes range from 10 to 20 square meters with monthly rental rates for at P4,800. Five more dormitories that can offer 1,400 beds are currently under construction.
By 2018, PULS targets to have 6,000 dormitory beds by developing 12 more properties.
SMIC booked an 8-percent increase in 2016 net income to P31.2 billion on sustained growth of core businesses.
Property accounted for 39 percent of total earnings, with banks comprising 37 percent and retail 24 percent.