October 20, 2024 | 12:00am
MANILA, Philippines — High-end property developer Arthaland Corp. is investing P1.7 billion in one of its units to gear it up for a future investment that the company would undertake.
In a disclosure to the Philippine Stock Exchange, Arthaland said it would acquire 17 million preferred shares in one of its subsidiaries, Pradhana Land Inc., valued at P100 apiece.
The transaction covers 68 percent of outstanding shares in Pradhana, which Arthaland plans to pay from its unissued authorized capital stock.
Arthaland will make a downpayment of P100 million today to Pradhana. Afterward, the balance of P1.6 billion will be paid upon the call of Pradhana’s board, but Arthaland can settle it in full or in part at any time before this call.
Arthaland said the investment would be put in a future project that Pradhana would pursue. The company noted that it would remain compliant with its financial covenants after the acquisition.
“This is the investment vehicle that will be used by the corporation for a future project, details of which will be disclosed at the appropriate time,” Arthaland said.
Pradhana was incorporated in 2019 for the purpose of engaging in real estate development.
As for Arthaland, the builder is stepping up its expansion efforts, keeping an eye out for possible acquisition of more properties across the Philippines.
Earlier, Arthaland executive vice president and head of business operations Christopher Narciso has said the company is negotiating the purchase of multiple properties within and around Metro Manila. Arthaland is looking to expand its portfolio in both dual and single towers.
Narciso said the company is acquiring a 3.6-hectare property for what it would call Project Olive, which would sit in a business district in Metro Manila. Arthaland is also procuring a five-hectare property in a metropolitan area in southern Philippines.
In May, Arthaland unit Sotern Land Corp. completed its incorporation, raising a new subsidiary that the parent can use for its business expansion.
Arthaland invested P25 million to subscribe to 25 million common shares in Sotern, funding the development of a mixed-use project in Laguna.
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