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Megaworld unit acquires service firm for P18M

Posted on September 12, 2011 10:26:54 PM [ BusinessWorld Online ]

SUNTRUST HOME Developers, Inc., a unit of Megaworld Corp., has moved to acquire a property management firm in a bid to generate more income, a disclosure filed with the local bourse yesterday showed.
Suntrust Home said it will be acquiring 100% of First Oceanic Property Management, Inc., for P18.062 million.

“The acquisition is intended to create a new revenue stream for the company which would complement its existing investments in real estate,” Suntrust Home said in the disclosure.

First Oceanic Property Management, a company engaged in residential and office condominium and private estates management, was spun off in 1990 in response to the growing and ever-changing needs of the property management industry. It provides basic administrative, housekeeping, and security services, as well as facilities and equipment management and premises fit-out.

On the other hand, Suntrust Home, first incorporated in 1956 under the name Ramie Textiles, Inc. entered the low- to middle-income real estaste market in 2002. It used to have a 60% stake in low-end property company Suntrust Properties, which counted Andrew Tan-led Megaworld Corp. among its major investors.

Suntrust Home’s acquisition comes after the firm reported a P1.121-million net loss in the second quarter versus P615,707 in profits in the same period last year. The company attributed this loss to the lack of revenues from equity share in net earnings of an associate this year.

Suntrust Home shares closed 1.79% higher at 57 centavos yesterday from 56 centavos at its previous close. -- F.J.G. de la Fuente

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