Greenhills and Ortigas Center = SM?

[vinj]

If this pushes through, that will make SM a Metro Manila land giant that will give Ayala Center a run for their money indeed. And what will happen to good ol Greenhills Shopping Center? Unimart?

Sy acquiring Ortigas group for $1B
‘Game-changing’ move for SM
By: Doris C. Dumlao
Philippine Daily Inquirer
1:02 am | Thursday, February 9th, 2012
3share78 71
HENRY SY SR.: Game-changing move
Tycoon Henry Sy Sr. is finalizing a deal to acquire a majority stake in the privately held Ortigas property group in a transaction worth around $1 billion, seen as a potential “game-changing” move that will expand the SM group’s landbank in the metropolis and give it control of the 16-hectare Greenhills shopping complex.
Inquirer sources confirmed that the SM group was close to a deal to buy into the Ortigases’ property holding unit OCLP Holdings after a crucial bloc, which included British banking giant HSBC and some family members, consented to the deal.
The sources said that HSBC, the single biggest stockholder of OCLP with a stake of 34 percent in the property unit, has already signed some documents approving the sale. On the other hand, there was likewise a critical mass of Ortigas family members who had agreed to the transaction, aiming to unlock more values from their vast landholding.
The target was to finalize all documentation by March, at the latest, one source said.
Shares of Sy-affiliated companies, particularly SM Investments Corp. and SM Prime Holdings, outperformed Wednesday due to the excitement on this prospective transaction with the Ortigas group.
SM Prime surged 4.7 percent to P15.60 a share while SMIC was up 2.4 percent to P692 each.
Jose Mari Lacson, head of research at local stockbrokerage Campos Lanuza & Co., said this was a potential “game-changer” move that could propel the SM group’s SM Land or SM Development Corp. to the size of Ayala Land Inc.
“It allows them to secure a large landbank in a major central business district. Ayala can now pick on somebody its own size,” Lacson said.
The Ortigas group has a vast urban landbank spanning Mandaluyong, San Juan and Quezon City, the crown jewel of which is Greenhills shopping center.
It is not yet known which SM unit or units will take part in the transaction but SM Prime is seen benefiting significantly given the Greenhills landbank.
“Only SMIC can muster that money without straining its balance sheet too much,” Lacson said. He added that the group could also choose to use SM Land but this unit would have to raise cash, although a share-swap was also seen as a possibility.
Just last week, SM Investments raised $250 million from the sale of five-year bonds convertible into equity.
Both the SM and Ortigas groups declined to comment on the prospective transaction Wednesday.
The Inquirer reported last December that the Ortigases have restructured their core unit into a new corporate entity to prepare for either the entry of a new strategic investor or a stock market debut.
Industry sources said HSBC had initiated the move to transform the closely held limited partnership Ortigas & Co. into a corporation. Under a limited partnership, general partners team up with one or more limited partners who, in turn, enjoy limited liability as long they do not participate in the control of the business. The general partners under this structure are the ones who carry more liability.

[Retz]

aba, ayos ito ah. sa fort na lang walang sm.

[mateomarco]

aba, ayos ito ah. sa fort na lang walang sm.

Yun ang akala ng marami sir Retz...Pero they are coming...They are everywhere!

[Monseratto]

Yun ang akala ng marami sir Retz...Pero they are coming...They are everywhere!

Paglabas ng bahay, may SM Mall agad sa harap ...ayaw mo yan? Dito sa amin may SM Hypermart, tapos may tinatayo na Savemore naman.

SM Prime to open 42nd mall,*SM City Olongapo | GMA News Online | The Go-To Site for Filipinos Everywhere

SM Prime is also scheduled to open SM City Lanang in Davao City, SM City General Santos in Southern Mindanao, SM City Consolacion in Cebu, SM City San Fernando in Pampanga, and SM Chongqing in China, which will bring to 46 its malls in the Philippines and five in China with an estimated 6.3 million sqm in gross floor area.

[vinj]

Paglabas ng bahay, may SM Mall agad sa harap ...ayaw mo yan? Dito sa amin may SM Hypermart, tapos may tinatayo na Savemore naman.

SM Prime to open 42nd mall,*SM City Olongapo | GMA News Online | The Go-To Site for Filipinos Everywhere

In San Fernando Pampanga, i was surprised they built a high-rise SM City at the city proper (near the Cathedral and next to the row of old houses). It looks poised to kill the small business in the "palenkge" area and to think SM City Pampanga is just a 5 to 10 minute drive from that area.

Makati has a better road network and nice mix of malls and parks. I wonder how SM will "redevelop" Ortigas Center to match what the Ayalas have done at the CBD.

[foifoi05]

Makati has a better road network and nice mix of malls and parks. I wonder how SM will "redevelop" Ortigas Center .

if were talking about the ortigas skyline area, sabi sa akin they were already sold na to other private individuals probably building owners na nakatayo dun.

So far aside from the greenhills area, they also have tiendesitas. Rumors baka makuha ulit nila yung napakalaking "metrowalk-homedepot area". And a property in capitolyo. anu pa ba?

Old folks told me, tiendesitas(i believe) and even greenhills were actually failures, so this move would really benefit


paktay ang tiangge nyan siguro

[_Qwerty_]

Hello SM Greenhills!

[CVT]

Quadruple A kaya iyang deal?
14.8K:cow:

[Monseratto]

Halos lahat ng SM stores (Watson, My Home, Toy Kingdom, Ace Hardware...) nasa Greenhills na. Yung Departmant Store lang ang wala. For sure mawawala yung Mercury Drug sa Greenhills unless gayahin nila yung Abenson...

[uls]

a billion dollars

--

Sean Parker: You know what's cooler than a million dollars?

Eduardo Saverin: You?

Sean Parker: A billion dollars

[shadow]

SM's growth is getting out of hand...grabe na!!! Everything na pasukin nila they want to be the biggest...

BDO parang sari sari stores na lang Sa dami ng branches, there's one strecth of street in Binondo 3 branches ng BDO just a spit away from each other.

Lalong makakawawa mga suppliers...baka 1 year na before magbayad SM...tsk tsk tsk

[vinj]

For sure mawawala yung Mercury Drug sa Greenhills unless gayahin nila yung Abenson...

That Mercury Drug in Greenhills has been there since time immemorial.

SM's growth is getting out of hand...grabe na!!! Everything na pasukin nila they want to be the biggest...

BDO parang sari sari stores na lang Sa dami ng branches, there's one strecth of street in Binondo 3 branches ng BDO just a spit away from each other.

Lalong makakawawa mga suppliers...baka 1 year na before magbayad SM...tsk tsk tsk

I've heard stories before that they arm twist suppliers just as well to control supplies to competitors who are beating them in some areas (i.e. Landmark Trinoma).

[KERSMcRae]

Yari ang BIR nito. mababawasan na ang target collection nila.. :D
- - - -
Only thing I dont like with SM is it's creating an ugly cityscape..

[uls]

ya well known ang bully behavior ng SM sa mga suppliers

SM has this you-need-us-more-than-we-need-you attitude

[shadow]

ya well known ang bully behavior ng SM sa mga suppliers

SM has this you-need-us-more-than-we-need-you attitude

Only Colgate stood up to them and Monterey....

[Monseratto]

Hope this doesn't derail the development plans for Greenhills. SMDC projects looks so boring.

[_Qwerty_]

sigurado yan pag nabili nang SM yan.. wala na yang Greenhills redevelopment na yan.. lalagyan sigurado ni Sy nang mga condo nya yan..

[boydapa]

tama lang yan! hindi naman kasi marunong magmanage yan mga oritigas na yan, parang mga araneta ng cubao nalampasan na tuloy sila ng sm na kung tutuusin eh parang tinga lang sa kanila noon araw.. buti nga sa kanila!

[Stoner]

Hm, at least the mall will stay open even after 7:00pm :P

Still a little alarming though...

[Monseratto]

.

A look back... from a local media Press Release.

SM group was close to a deal to buy into the Ortigases’ property holding unit OCLP Holdings after a crucial bloc, which included British banking giant HSBC and some family members, consented to the deal.

The sources said that HSBC, the single biggest stockholder of OCLP with a stake of 34 percent in the property unit, has already signed some documents approving the sale. On the other hand, there was likewise a critical mass of Ortigas family members who had agreed to the transaction, aiming to unlock more values from their vast landholding.

The deal has crashed and burn...the "Press Release" forgot to mention something...Mercury Drug can breath easy now...

Posted on June 28, 2012 10:35:42 PM

SM buy-in blocked by Ortigas Group

THE ORTIGAS family has acquired Hongkong and Shanghai Banking Corp.’s (HSBC) 34% stake in the clan’s property firm for some P11 billion, blocking the SM Group’s attempts to buy into one of the country’s oldest real estate companies.

"The Ortigas Group exercised its right of first refusal as it bid for the shares held by HSBC ... OCLP Holdings (Ortigas & Co. Limited Partnership Holdings, Inc.) was able to match the earlier offer of the SM Group," company director Jaime M. Ortigas told BusinessWorld yesterday.

"HSBC was selling something worth like P11 billion for the entire 34% stake and the deal pushed through. Today was the deadline for the purchase payments," Mr. Ortigas added.

Corazon P. Guidote, senior vice-president for investment relations at SM Investment Corp. (SMIC), declined to comment. HSBC officials were not immediately available.

SMIC in February disclosed that it was in talks with OCLP Holdings, saying it was keen to tap into the Ortigas’ clan vast landholdings.

OCLP Holdings is the parent of Ortigas & Co., the firm behind the Greenhills, Valle Verde and Greenmeadows subdivisions, the Ortigas business center, as well as the Greenhills Shopping Center. It traces its roots to the 1920s when the Augustinians sold 4,033 hectares in what is mostly present-day Mandaluyong City to Frank W. Dudley and Francisco Ortigas.

"I guess they don’t want everything to [go to] SM," Joseph Y. Roxas, president of brokerage Eagle Equities, Inc., said when asked to comment on the deal.

Nevertheless, he said this shouldn’t significantly impact SM’s long-term strategy.

"I don’t think this will be a setback for them. They have a lot of investments elsewhere," Mr. Roxas said.

OCLP Holdings is unlikely to entertain any buy-ins soon, with Mr. Ortigas saying: "There are no immediate plans to sell any company stake to any party. We will just pursue our development projects on our own."

SM Investments were down by 0.82% to P722.00 each yesterday from P728.00 previously. -- Franz Jonathan G. de la Fuente