Boutique property developer Arthaland Corp. has finalized its planned P1-billion preferred shares offering scheduled this month.
Arthaland, according to the final prospectus, will offer 10 million in preferred shares at price of P100 apiece with a dividend rate of 6.9277 percent a year.
The preferred shares will be the second and last tranche from the company’s P3-billion shelf registration filed with the Securities and Exchange Commission in 2016.
The company tapped BDO Capital and Investments Corp. as the sole issue manager and book runner of the fund-raising activity.
Arthaland set the offering period from June 17 to 21 and the issue date on June 27.
The company plans to use the net proceeds from the offering to fund two residential projects, one in Cebu and another one in Makati.
Arthaland said it was in discussions with the owner of a prime property inside the foremost business district of Cebu City to jointly develop a 2,000 square-meter property into a premier residential condominium project.
Arthaland is allocating P300 million from the proceeds of the offering to fund the company’s estimated share in the Cebu residential project toward the second half of the year.
The property firm is also in discussions to acquire a 1,800 sq. m. property in the Makati central business district. It will develop the property into a high-end residential condominium with 29,000 sq m. of gross floor area.
For the Makati residential project, Arthaland is allocating P530 million from the proceeds of the fund raising activity toward the last quarter of 2019 or the first quarter of 2020.
The company in December acquired about 47.4 percent of a 2,018-sq.m. property along Antonio Arnaiz Avenue within the Makati Central Business District.
Arthaland, along with a party that later bought the balance of 52.6 percent of the property, plans to develop a high-rise luxury residential property subject to the finalization of terms of the joint venture.
The company is evaluating other prospective acquisition targets within the business districts of Makati, Bonifacio Global City, Cebu as well as other emerging cities.