ARTHALAND CORP.’S board has approved a P45-million share subscription to Bhavya Properties, Inc. to finance the latter’s capital requirement for an ongoing condominium project, the listed property developer said on Thursday.
The board authorized the subscription to 450,000 preferred shares of Bhavya Properties at P100 apiece, the company said in a regulatory filing.
Bhavya Properties is 60% owned by Arthaland, while the remaining 40% is held by Singapore-based Narra Investment, which is managed by investment management company Arch Capital Management Co. Ltd.
The additional equity will be used to fund the construction of the 31-storey Eluria residential condo project in Legazpi Village, Makati City.
“Bhavya Properties will leverage on the additional equity to fund Eluria’s working capital requirement until its scheduled project completion in 2025, while ensuring compliance with all its financial covenants,” 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.
Arthaland also said that Narra Investment Properties Pte. Ltd. will have a P30 million share subscription to Bhavya Properties “to the extent of 300,000 (preferred shares) at the price of P100 per share.”
Eluria is being built by Arthaland in partnership with Arch Capital.
Arthaland is expecting to generate P6 billion in sales value from Eluria. The property will feature 37 units designed by Sydney-based architecture and interior design firm FMB Architects.
Eluria’s amenities include a heated saltwater leisure and lap pool, an indoor children’s playroom, a function hall, a potager garden at the roof deck, and chauffeur shuttle services to select nearby destinations.
On Thursday, Arthaland shares were unchanged at 50 centavos per share. — Revin Mikhael D. Ochave
