Arthaland Corporation, the upscale and green property developer controlled by the Po family, is investing P710 million to acquire property through a subsidiary.
In a disclosure to the Philippine Stock Exchange, the firm said it will subscribe to 7.1 million preferred shares of subsidiary Zileya Land Development Corporation.
The shares will be issued from Zileya’s proposed authorized capital stock increase of 20 million redeemable (at Zileya’s option), cumulative, voting preferred shares at a subscription price of P100.00 per share and a par value of P1 per share, pending approval by the Securities and Exchange Commission (SEC).
Arthaland said, “Zileya is a wholly-owned subsidiary of the Corporation which is in the process of completing the acquisition of a property which will be the site of a new sustainable development.”
The additional investment is equivalent to a 0.32 percent stake in Zileya, which has an authorized capital stock of P200 million. This is divided into P150 million worth of common shares (1.5 million shares with a par value of P100 per share) and P50 million of preferred shares (500,000 shares with a par value of P100 per share).
Arthaland will pay for its subscription in full, in cash, on or before March 31, 2025. The payment will be recorded as a deposit for future subscription while awaiting SEC approval for the increase in authorized capital.
Last November, the firm successfully raised P2.5 billion to fund its expansion program by issuing preferred shares with an initial dividend rate of 7.326 percent per annum.
A substantial portion of the proceeds will fund Arthaland’s investment in its upcoming two-tower, multi-certified sustainable residential project catering to the mid-market segment.
This will supplement Arthaland’s larger, multi-phased projects, providing a steady pipeline of sustainable, master-planned projects over the next 10 years and beyond.
This is the fourth time Arthaland has listed preferred shares on the PSE. Since its maiden offering, the company has acquired properties, launched new projects, and completed them on time.
It has assembled a portfolio with a total gross floor area of 456,000 sqm, reflecting almost five-fold growth in the past five years. Each project is unique, best-in-class, and adheres to the highest sustainability standards.
From Bonifacio Global City, Arthaland has expanded into the high-growth areas of Metro Cebu and Metro Laguna. It has also expanded into the established central business districts of Makati and Taguig.