MANILA, Philippines – Listed boutique property developer Arthaland Corp. formally filed with the Securities and Exchange Commission its application for a preferred share offering amounting to as much as P3 billion.
Proceeds would be used to finance the development of the Cebu Exchange (P53.6 million), Biñan Laguna project (P458.8 million), Makati Residential (P371.6 million) and South of Metro Manila project (P822.4 million).
Preferred shares are cumulative, non-voting, non-participating, non-convertible and peso-denominated.
The company filed a three-year shelf registration for 30 million preferred shares.
It intends to sell the peso-denominated preferred shares with a par value of P1 for P100 a piece.
Based on its filing, Arthaland intends to initially offer P1 billion worth of preferred shares with an oversubscription option of another P1 billion.
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The net proceeds will be used to partially finance the acquisition and development of the company’s real estate projects, repayment of loans and general corporate purposes.
The Cebu Exchange project is a commercial development located within the Cebu IT Park in Barangay, Lahug, Cebu City. The land was acquired by Arthaland subsidiary Cebu Lavana Land Corp. last year.
The company expects to launch the project in the third or the fourth quarter of the year. Construction is expected to start in the second quarter of 2017.
For the Biñan Laguna Project, Arthaland unit Cazneau will develop an 8.2-hectare residential community project in the province.
It will the first campus-type residential community project and will feature a mix of low rise residential and retail buildings as well as town homes which will cater primarily to the student, faculty and other employees of the academic immunity in the area.
The Makati Residential project, on the other hand, will be a high residential condominium, which will cater to the middle to upper segments of the market.
As for the South of Metro Manila project, the company intends to acquire a property, which is approximately 3,000 sqm in size.
