The Philippine Competition Commission approved the acquisition by SM Investments Corp. of a 61.2-percent stake in dormitory builder Philippines Urban Living Solutions Inc.
The PCC said in a statement its Mergers and Acquisitions Office found the transaction would not result in substantial lessening of competition in the relevant market.
“After the acquisition, sufficient competitive constraints on the merged firm remains from other market participants,” the agency said.
The PCC, the country’s anti-trust body, is mandated under the Philippine Competition Act to review mergers and acquisitions to ensure the deals will not prejudice the interest of the consumers.
SMIC said in October it planned to acquire a significant stake in PULS, a property developer engaged in the business of leasing bed-spaces and units in purpose-built dormitories around the Bonifacio Global City in Taguig City and Makati.
The planned investment marks the entry of SMIC into the Philippine rental housing market.
PULS opened its first dormitory building in 2013. At present, it owns and manages five buildings in Makati and Bonifacio Global City with over 1,000 beds.
All buildings are operating under our MyTown rental brand. Five more dormitories that can offer 1,400 beds are currently under construction.
PULS targets to have 6,000 dormitory beds by 2018.
The company, backed by top emerging markets fund manager Mark Mobius, announced plans to raise as much as P700 million through an initial public offering in 2017 to 2018.
MyTown dormitories offers a wide range of comprehensive amenities and recreational areas like gym, theatre, game rooms and study rooms. Units are all fully-furnished.
Room sizes range from 10 to 20 square meters with a monthly rental rate starting at P4,800.