SBS buys Coca-Cola warehouse property in Laguna for P520 M.
MANILA, Philippines Listed chemical firm SBS Philippines Corp. continues with its property buying spree as it is set to acquire Coca-Cola warehouse facilities and property in Laguna for P520 million.
In a disclosure to the Philippine Stock Exchange yesterday, SBS said its unit Lence Holdings Corp. (LHC) entered into a binding commitment with The Coca Cola Export Corp.
-Philippine Branch and its related parties for the acquisition of a lot and warehouse facilities at the Silangan Industrial Park in Calamba, Laguna. LHC is a newly formed holding company, 65 percent owned by SBS, 25 percent by wholly owned subsidiary SBS Holdings and Enterprises Corp.
and 10 percent by the Sytengco family. SBS said the transaction involves a combination of a stock purchase of Benesale Land Inc.
, the company owning the land property, and an asset purchase of the buildings, improvements and machinery of the facility. SBS said the properties being acquired include a warehouse facility complex that covers a total land area of around five hectares, together with ambient and cold storage facilities, machinery and other building improvements.
"The facility will principally be used in the warehouse and distribution operations of the corporation to serve as a key distribution center for regional market customers south of Metro Manila. Given that SBS customers are looking for savings, the south depot will allow greater opportunities for customers to cut down on their logistics and sourcing organization, integrate the corporation's procurement and logistic capabilities in their business processes, and promote collaborations for supply chain optimization to simplify their operations," SBS said.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1 "Further, this capital expenditure would not only help control residual risks in not owning major logistic facilities but it is also a good investment opportunity to broaden the corporation's asset base," it added. SBS said the arrangement would also allow the lease or use of the other areas for additional business building projects of the SBS Group.
"This arrangement permits the corporation to grow and diversify its income streams," it said. SBS in March last year announced plans to diversify its business to include acquiring or participating in investments in property-related assets to provide balance and to counteract some of the fluctuations in the chemical trading business.
Last October, the firm told the local bourse its associate company Cleon Philippines Holdings Corp. is acquiring a 54,000-square meter property in barangays Vergara and Namayan in Mandaluyong City in line with its diversification strategy.
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|Publication:||Philippines Star (Manila, Philippines)|
|Date:||Jan 3, 2018|
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