SM Prime satisfied with ALI deal on Ortigas

MANILA, Philippines - SM Prime Holdings Inc. is satisfied with the outcome of its deal with property giant Ayala Land Inc. over a stake in the Ortigas family’s holding firm.

SM Prime president Hans T. Sy said the result, announced late last week, of its more than two-year-long tug-of-war with the Ayalas over control of OCLP Holdings Inc. is a positive development for all firms involved.

“It was a proposal that was laid at the table that we felt maybe rather than stressing ourselves out, we just decided to see what we can do together,” Sy said on the sidelines of the 3rd Top Leaders Forum yesterday.

The SM official, however, remains mum on its upcoming plans for OCLP Holdings, saying the partnership has just started.

He also declined to identify the SM officials who will represent the group in the board of OCLP.

“We can’t divulge anything yet. I don’t want to preempt anyone yet,” Sy said.

SM and ALI last Friday ended a heated rivalry over OCLP after announcing that they will be partnering instead with the Francisco Ortigas Group and the Rafael Ortigas Group.

ALI would have two board seats in the Rafael Ortigas bloc while SM would also have two board seats in the Fernando Ortigas group.

ALI chief finance officer Jaime Ysmael and ALI commercial business group head Jose Jalandoni have already been identified as representatives of the country’s oldest conglomerate in the OCLP board.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country and most notably known as the developer of the Greenhills Shopping Center.

The family currently owns strategic land bank areas in the Ortigas Business District, Greenhills Shopping Center, Tiendesitas in Frontera Verde, Circulo Verde and Capitol Commons.

The Ortigas district, which encompasses at least 100 hectares, is home to many shopping malls like Robinsons Galleria, Shangri-La, SM Megamall, Podium and St. Francis Square.