Arthaland sells 40% stake in 2 real estate subsidiaries
Upscale property developer Arthaland Corp. has raised P516 million from the sale of a 40-percent stake in two real estate subsidiaries to a unit of international real estate fund and asset manager Arch Capital Management Co. Ltd.
Arthaland has also consolidated its interest in Cebu Lavana Land Corp. (CLLC), a subsidiary that owns two parcels of adjacent land in Cebu City where office property complex Cebu Exchange was built on.
Arthaland sold a 40-percent stake in Bhavana Properties Inc. and Bhavya Properties Inc. to Singapore-based Narra Investment Properties Pte. Ltd., which is managed by Arch Capital.
The investment agreements have been executed on Friday, giving Narra two board seats each in the five-man boards of Bhavana and Bhavya. Arthaland retained ownership of 60 percent of both firms.
Bhavya was incorporated in 2019 as the investment vehicle of Arthaland to acquire First Capital Condominium located at 119 Rada Street, Legaspi Village, in Makati City, with the objective of developing therein a high-end residential condominium.
Bhavana, also incorporated in 2019, is the investment vehicle used by Arthaland to purchase a parcel of land with a total area of around 2,245 square meters located in Corner Samar Loop Road and Ayala, Hipodromo, Cebu City, which will be the site of its next project in the Visayas.
Arch Capital, meanwhile, is bowing out of CLLC.
Arthaland thus approved the acquisition of 40-percent additional shares in CLLC for P113.16 million. Arthaland also bought the rights, title and interest accrued on shareholder advances for P762.34 million.
The seller was Rock and Salt B.V., a Netherlands-based foreign private limited liability company managed by Arch Capital.
The agreement was also signed and executed on Friday, giving Arthaland 100-percent control of CLLC.
Arch Capital is an independently owned real estate private equity investment platform with a diversified portfolio of residential for sale and for lease, office, retail and mixed-use property assets across Asia-Pacific.
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