BIZ BUZZ: Hello, SM Araneta City
Before the late retail tycoon Henry Sy Sr. became one of the country’s biggest landlords through the giant SM chain, he was a lessee himself. And one of the first companies he negotiated with for space was the Araneta Group.
Araneta Group chair Jorge Araneta described Sy, who was in the early years of building his empire, as a tough negotiator. However, once the terms were set, they were final. With Sy, Araneta said there was no surprise wrangling over details just before contract signing, unlike other locators. No wonder they became fast friends who used to have lunch practically every week.
It thus pleased Araneta that starting this month, SM Cubao, which was one of the first department stores established by Sy, will be officially known as SM Araneta City.
The rebranding is part of the continuing redevelopment plan of Araneta City to revamp and modernize the country’s pioneer commercial district. Araneta Center itself was renamed Araneta City—the City of Firsts—in September 2019.
“We are happy that SM, itself an institution in Philippine retail, is part of the memorable and colorful history that shaped Araneta City. They are one of our very first partners in business and they have been a valuable part of our identity through the years,” Antonio Mardo, senior vice president for operations of Araneta City, said in a statement.
It was in 1980 when SM—known then as Shoemart department store—opened its third branch in what used to be called Araneta Center. SM Cubao opened four years after nearby Ali Mall was inaugurated in 1976 and was the center’s second land lease establishment (after Rustan’s Superstore in 1975). It has since become one of the original prominent shopping destinations in Quezon City.
“With SM Cubao’s rebranding to SM Araneta City, the transformation of Araneta from a pioneering commercial center to a modern mixed-use development takes on new heights. We look forward to completing our transformation and achieving our redevelopment plans with all our business partners in the near future,” Mardo explained.
Following the renovations of existing properties, the City of Firsts is preparing to open soon the expansive Gateway Mall 2 and the country’s firsts ibis Styles hotel and will start construction of more developments.
—Tina Arceo-Dumlao
Magic and tech
Philippine Digital Convention (PH Digicon) 2022, a leadership event tackling digital innovations by PLDT Inc., is bringing Magic in this year’s edition.
Yes, you read it right. NBA Hall of Famer Earvin “Magic” Johnson is headlining the conference this week at the Marriott Grand Ballroom where over 10,000 delegates from across the world are expected to attend.
Johnson, a philanthropist and a businessman, will be sharing his experiences as an entrepreneur navigating a business landscape that has been increasingly going digital.
He is the founder and CEO of the global empire Magic Johnson Enterprises, which is involved in sports ownership, food service and facility management, publishing and media and entertainment.
In his athletic career, Johnson earned five NBA championship rings and won three MVP awards.
PH Digicon 2022 is scheduled on Oct. 27 to Oct. 28. This is the first time the event will be held physically again after two years.
“At long last, after two years of the pandemic, we are excited and are all looking forward to seeing and connecting with familiar and new faces in this hybrid, limited in-person Philippine Digicon,” according to Jojo Gendrano who is PLDT’s head of enterprise and international business group.
“As you know, Digicon is always a highly anticipated event among brands, entrepreneurs and business leaders,” he added.
PLDT is teaming up with Nokia, Cisco, FiberHome, Palo Alto Networks and Google Cloud, among others, for this event.
—Tyrone Jasper C. Piad
Riding out market volatility
The prevailing market volatility has led to publicly listed companies facing tough questions on how they can ensure returns on their shareholders’ investments. However, with factors such as the Federal Reserve’s aggressive tightening of monetary policy, the answers to these questions remain limited for many.
Some are trying unique solutions, such as by pitching themselves to foreign investors. That seems to be the game plan of AbaCore Capital Holdings Inc.
The holding company, whose core operations are located in Batangas, is currently attending the Emerging and Frontier Conference by Auerbach Grayson. These two entities have actually had a working relationship, with the US-based investment bank placing a block of stocks of ABA with institutional asset managers in North America and Europe.
During the virtual, four-day conference lasting until Oct. 28, AbaCore will join companies and portfolio managers from 38 countries on getting to know businesses that have demonstrated they can achieve long-term growth.
This seems to be a golden opportunity for the company to promote itself. After all, Abacore has announced a number of expansion plans this year— from leveraging its land bank as a platform for businesses to enter the Batangas market (e.g. the Gaisano group) to monetizing its coal assets in Surigao del Sur. The company also has an ongoing venture with a New Zealand-based group to build a resort-like condotel in Batangas.
The local market has warmly welcomed these developments, as seen in Abacore’s stock surging by almost 200 percent on a year-to-date basis. This is in complete contrast to the broader stock market, which has been down by double-digits so far this 2022.
Indeed, bright spots in the Philippine markets have been few and far between and most companies are struggling to navigate through the volatility. With this plan, can AbaCore continue its recent momentum and win the hearts of international investors? Abangan!
—Daxim L. Lucas
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