SMIC completes acquisition of MyTown

SMIC said the total transaction amount was less than 10 percent of the net book value.

The parties have obtained the approval of the Philippine Competition Commission (PCC) for the transaction last March 13. Mergers and acquisitions amounting to more than P1 billion need the approval of the PCC.

In a disclosure to the Philippine Stock Exchange (PSE), SMIC said the company wants to invest in the growing dormitel segment.

MyTown is a dormitory builder backed by Mark Mobius’ Templeton Emerging Markets Group and Ayala-led BPI Capital Corp.

PULS was set up in 2011 and formally established in 2012 as the first Philippine company that specializes in building 10 to 20-square meter affordable units.  These units are rented out near Metro Manila central business districts,  catering to the underserved young professional demographic.

Aimed at young professionals, MyTown’s dormitories are equipped with attractive amenities and targeted retail facilities that allow its tenants to save on travel time and transportation cost.

It operates at least five projects with over 1,000 beds and is constructing an additional five projects that can house an additional 1,400 beds. The target is to utilize and expand its land bank to reach 6,000 beds by 2018.

The dormitory units come in four configurations, with each fully furnished with toilet and bath, kitchenette, a desk and smart bunk beds with ergonomic provisions. Other amenities in MyTown buildings include a movie theatre, game rooms, KTV rooms and a roof deck. Monthly rental starts at P4,800.

The target market groups are young professionals and BPO employees working in the country’s business districts who do not want to go through the daily traffic to and from their workplace.

In December 2015, Franklin Templeton, through the Templeton Strategic Emerging Markets Fund IV LDC along with BPI Capital Corp. invested in PULS using convertible notes.