Manila Bay Development Corp., a real estate company that owns parcels of land within a reclamation area in Parañaque City, cancelled a plan to list with the Philippine Stock Exchange by way of a backdoor listing through dormant Supercity Realty Development Corp.
SRDC said in a disclosure to the stock exchange it was informed by MBDC and Mr. Chua that have decided not to proceed with the proposed property-for-share swap agreement due to “unfavorable market conditions.”
“Thus, the backdoor listing will no longer push through. SRDC shall continue to serve institutional or corporate clients and focus on the construction of horizontal residential house and land development works for residential subdivisions,” the company said.
SRDC in May reported a plan to issue 990,000 common shares to MBDC and president George Chua in exchange for 12 parcels of land in Parañaque City with a total area of 227,510 square meters.
The deal required an increase in the SRDC’s authorized capital stock to P1.5 billion from P155 million, which was already approved by the shareholders during an annual stockholders meeting held on June 26, 2019.
The transactions would have allowed SRDC to acquire premium real estate along Roxas Boulevard and within the Reclamation Area of the Bay City (Boulevard 2000) development in Parañaque City.
SRDC would have established a source of recurring rental income or future income from development projects, such as resort hotels, tourist-related attractions with dining and entertainment, commercial areas with a sprinkling of upscale residential and serviced residential apartments and office buildings.
MBDC acquired several parcels of land at the Central Business Part II Complex CBPII in Parañaque City over 30 years ago. The value of the land has significantly increased since then. No major projects were ndertaken by MBDC so far.
Listed in the PSE in 2003, SRDC is mainly engaged in the business of construction, and related services and activities.
The board of SRDC in February 2008 decided to wind down the company’s construction business and re-focus activities on real estate development.
Shares of SRDC were last traded on May 11, 2009 when it closed at P1.32.