Boutique property developer Arthaland Corp. successfully raised P1 billion from the sale of preferred shares amid the strong demand from corporate and retail investors.
Arthaland said in a disclosure to the stock exchange it completed the public offering of 10 million Series C preferred shares at P100 apiece.
The company said of the 10 million preferred shares, 5.235 million were purchased by corporate investors while 4.763 million were bought by retail investors.
The preferred shares carry a fixed rate of 6.9277 percent per annum.
The preferred shares represent the second and final tranche from the company’s 30 million shelf registration approved by the Securities and Exchange Commission.
The shares will be issued and listed with the Philippine Stock Exchange on June 27.
Net proceeds of the offer will be used to partially finance the acquisition and development of the company’s real estate projects and for general corporate purposes.
Arthaland said it planned to develop two residential projects, one in Cebu and another in Makati.
The property firm is now in discussions with the owner of a 2,000-square-meter prime property in the business district of Cebu City to jointly develop the property into a premier, dual certified and sustainable residential condominium.
Arthaland said it was also in talks for the acquisition of a 1,800-sqm prime property in Makati CBD that would be developed into a high-end residential condominium.
BDO Capital and Investment Corp. was tapped as the sole manager, book runner and underwriter of the issuance.
Arthaland issued the first tranche of preferred shares in 2016 when it raised P2 billion in proceeds.
Arthaland announced plans that time to spend P30 billion over the next five years, of which P24 billion would be used for project development and P6 billion for land acquisition.
Under the five-year plan, Arthaland will construct two office buildings in Bonifacio Global City and Cebu, two residential developments in Makati and Laguna and a commercial project south of Luzon.
Arthaland is majority owned by Century Pacific Group Holdings Inc. of the Po family.
CPGHI is the parent company of Century Pacific Food Inc., the largest and the leading player in the Philippine canned food industry and Shakeys Pizza Asia Ventures Inc.