Arthaland eyes preferred share sale on November 18

MANILA, Philippines – Boutique property developer Arthaland Corp. plans to start the sale of its preferred shares on Nov. 18.

The company is targeting to issue P3 billion worth of shares, with an initial tranche of up to P2 billion to include an overallotment option.

The Nov. 18 date would depend on regulatory approvals such as its permit to sell from the Securities and Exchange Commission (SEC) as well as the listing approval from the Philippine Stock Exchange.

Based on its indicative timetable, the public offer period is from Nov. 3 to 9 while the dividend rate setting date is on Oct. 26.

According to its registration statement filed with the SEC, proceeds would be used to finance the development of four new projects – the Cebu Exchange Project (P53.6 million), Biñan, Laguna Project (P458.8 million), Makati Residential Project (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 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 and earmark another P1 billion for an oversubscription option for the first tranche.

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 totalling P1.971 billion, it said.

“The company plans to allocate funds for general corporate purposes which may include funding working capital requirements, funding for future acquisition of properties when the opportunities arise or earmarking of funds for the retention of retail or commercial units in any of the company’s projects to increase recurring lease revenues,” it also said.

The Cebu Exchange project, is a commercial development located within the Cebu IT Park in Barangay, Lahug, Cebu City.

In 2015, Arthaland subsidiary Cebu Lavana Land Corp. acquired the land which will be the site of the project.

The company expects to launch the project in the fourth quarter of 2016. Construction is expect to start in the second quarter of 2017.