PROPERTY developer Arthaland Corp. said on Thursday that its board has approved the infusion of P18 million in fresh capital into a real estate subsidiary, Bhavya Properties Inc., through a share subscription.
In a stock exchange filing, Arthaland said it would subscribe to 180,000 preferred shares of Bhavya at P100 each, to be issued from the latter’s unissued authorized capital stock and to be fully paid in cash on Oct. 9, 2024.
“Bhavya will leverage on the additional equity to fund its working capital requirements while ensuring compliance with all its financial covenants,” Arthaland added.
Bhavya is currently developing Eluria, described as an ultra-luxury development that was launched in 2022 and is located within the Makati Central Business District.
Last March, Arthaland infused P45 million in Bhavya by subscribing to 450,000 preferred shares of the latter at P100 each.
Arthaland currently holds 60 percent of Bhavya after it sold 10 million common shares to Singapore-incorporated Narra Properties Investment Pte. Ltd., which now holds 40 percent ownership and voting rights.
For the first six months of 2024, Arthaland reported a net income of P466.86 million, down 48 percent from last year’s P904.39 million, as revenues declined 23.74 percent to P2.57 billion.
The company’s shares were unchanged on Thursday at 41 centavos each.
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