SBS PHILIPPINES Corp. has completed its P520-million acquisition of a warehouse facility owned by the local unit of multinational beverage giant The Coca-Cola Corp.
In a disclosure to the stock exchange on Monday, SBS said its subsidiary Lence Holdings Corp. (LHC) has closed the transaction on Feb. 9. The acquisition involves warehouse facilities and the property lot of The Coca Cola Export Corp. (TCCEC) — Philippine Branch located in Silangan Industrial Park, Mapagong, Calamba City.
The 4.7 hectare-property houses ambient and cold storage facilities, and machinery operated by TCCEC. The lot where the facilities stand, meanwhile, is owned by Benesale Land, Inc. (BLI).
Prior to the transaction, LHC signed a share purchase agreement with TCCEC for the purchase of 100% equity interests in BLI, or a total of 27,000 shares.
SBS intends to use the warehouse facility as a key distribution center for regional market customers south of Metro Manila. The company noted this will also cut logistics costs and sourcing organizations, thereby providing savings for SBS customers.
“Further, this capital expenditure would not only help control residual risks in not owning major logistics facilities but it is also a good investment opportunity to broaden the Company’s asset base,” SBS said.
Incorporated in 2001 as a chemical trader and distributor, SBS has since diversified into the real estate sector by making investments in various properties through its subsidiaries. In November 2017, the company created LHC as a unit that will specifically handle investments in warehouse facilities.
LHC is 65% owned by SBS and 25% by SBS Holdings and Enterprises Corp. (SHEC), while the remaining 10% is owned by the Sytengco family.
Aside from warehouse facilities, SBS has been ramping up acquisitions in the property sector through SHEC, which has already acquired a stake in different firms with properties in Mandaluyong City, Quezon City, and Bacolod City.
Shares in SBS shed a centavo or 0.16% to finish at P6.23 apiece at the Philippine Stock Exchange on Monday. — Arra B. Francia