LISTED property developer Arthaland Corp. is set to acquire shares in Bhavya Properties, Inc. to increase the latter’s working capital for the completion of a residential condominium project in Makati City.
In a regulatory filing on Thursday, Arthaland said it would subscribe to Bhavya Properties’ preferred shares amounting to 663,000, which will come from its unissued authorized capital stock.
Arthaland owns 60% of Bhavya Properties while the remaining 40% is owned by Singapore-based Narra Investment Properties Pte. Ltd.
The subscription, which is set on Nov. 10, is priced at P100 per share totaling P66.30 million. Bhavya Properties is currently developing the Eluria residential condo project in Legaspi Village, Makati City.
“Bhavya Properties will leverage on the additional equity to fund Eluria’s working capital requirements until its scheduled project completion in 2025, while ensuring compliance with all its financial covenants. Narra will also subscribe to Bhavya Properties’ preferred shares to the extent of 442,000,” Arthaland said.
“Preferred shares are voting and have such features as the Bhavya board of directors prescribe, but in no case such shares shall be cumulative or redeemable at the option of the holder,” it added.
In a separate disclosure, Arthaland said it would also subscribe to 67,500 common shares of Arthaland Prestige Property Solutions, Inc. (APPS) at P100 per share totaling P6.75 million.
APPS is the sustainable property management arm of Arthaland. The acquisition is set for Nov. 7.
“APPS will be expanding its scope of services and this requires an increase in its paid-up capital stock,” Arthaland said.
“The subscription to 60,000 common shares of APPS is conditioned on the approval by the Securities and Exchange Commission of the increase in its authorized capital stock. There is no other condition for the subscription to the 7,500 common shares as these will come from its unissued authorized capital stock,” the company added.
On Thursday, shares of Arthaland at the local bourse closed unchanged at P0.455 apiece. — Revin Mikhael D. Ochave