SM Investments Corporation is exploring and investing in complementary businesses that can potentially enhance group synergies, and other businesses that offer stable cashflows with attractive financial returns. SM is attracted to companies that can capture the high-growth opportunities in the emerging Philippine economy. We also like market leaders or those with potential to become leaders in their chosen sectors because SM is in the business of developing highly competitive companies and supporting them with its vast resources and skills for them to thrive and realize their potential.
In all its portfolio investments, SM finds the best partners who know and can run the businesses effectively, manage the inherent risks, and deliver superior returns. Noted examples of SM’s ventures include its foray into integrated resorts through Belle Corporation, in copper mining through Atlas Consolidated Mining and Development Corporation, in logistics firm 2GO Group and dormitel operator MyTown.
Belle Corporation is a listed company engaged in property development, primarily in the high-end leisure market, and has various investment holdings including the development of an integrated gaming resort, the City of Dreams Manila.
Atlas Consolidated Mining and Development Corporation (Atlas Mining) is primarily engaged in metallic mineral exploration and mining. It operates the Toledo Copper Mine in the province of Cebu through its wholly-owned subsidiary Carmen Copper Corporation (Carmen Copper).
While known as a property developer, SM is also open to having partners in this space as seen in its recent acquisition of the stakes of CPI Asia Ten B.V. in various companies, which own buildings aimed at BPO operators in Bonificacio Global City in Taguig. The acquisition is a financial investment that delivers strong yields through direct exposure to the BPO sector.
Another example is SM’s joint venture with DoubleDragon Properties Corp. in CityMall Commercial Center, Inc. CityMall envisions the development of a branded independent community mall chain located in prime locations, mostly in Visayas and Mindanao. With this partnership, SM hopes to hasten the growth of its food business, retail brands and supermarket chains across the country.
In 2016, SM completed the acquisition of a minority stake in 2GO Group via a 34.5% stake in its parent company. 2GO is the country’s largest integrated supply chain operator whose businesses include shipping, freight forwarding, warehousing, and express delivery services. It also announced buying 61.2% into Philippines Urban Living Solutions, Inc., the operator of dormitory buildings under the “MyTown” brand. 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. This acquisition allows SM to capture growth opportunities in the dormitel segment.