LFM plans listing of property unit

Published June 21, 2021, 6:00 AM

by James A. Loyola

Liberty Flour Mills Inc. (LFM) is planning to list its the shares of its subsidiary LFM Properties Corporation (LPC) by way of introduction after the distribution of the real estate unit’s shares as property dividend to parent company shareholders.

 In the registration statement filed with the Securities and Exchange Commission, LPC said it is listing 25 billion of its common shares on the Philippine Stock Exchange’s Small, Medium and Emerging (SME) Board with an initial listing price of P0.107.

LPC has an authorized capital stock of P400 million comprised of 30 billion common shares with a par value of P0.01 per share and one million non-voting, non-convertible preferred shares.

It has a subscribed, paid-up, and outstanding capital stock of P250 million comprising of 25 billion common shares and zero preferred shares.

LPC is a real estate company originally incorporated as Alfaro Land Holdings Corporation. It changed its corporate name to its current name in 1996.

On October 4, 2005, the SEC approved the merger between LPC, the surviving corporation, and LFM Land Corporation and Valero Land Corporation. 

Last November 25, 2020, the LFM Board of Directors approved the declaration of property dividend covering up to 10.35 billion LPC common shares owned by LFM in favor of holders of LFM common shares at the ratio of 69 LPC common shares for every one LFM common share held.

After the dividend is distributed, LFM’s shareholdings in LPC shall decrease to 60.11 percent of LPC and Parity Values Inc., a corporation that holds 40.35 percent of LFM’s outstanding shares shall become a stockholder of LPC with a 16.70 percent stake.

LPC currently derives all its revenues from lease rentals of real estate properties it owns in the busy central business districts and commercial hubs in Metro Manila.

These include the 21-storey Liberty Plaza Building and the 21-storey Liberty Center Building which are situated in adjacent properties in Makati.

LPC also owns a piece of land with an area of 2,094 square meters located at Ortigas Avenue. corner F. Ortigas Jr. and Sapphire Roads in Ortigas Center which is currently being leased as a staging area for construction. Previously, the lessor used the land as parking spaces. 

LPC also owns two  residential condominium units at Pacific Plaza Condominium along Ayala Avenue that are currently for lease. These assets have a total market value of P3.47 billion: Liberty Plaza at P1.49 billion, Liberty Center at P1.09 billion, Ortigas Land at P791.5 million, and the condominium units at P99.18 million.