Po family-led Arthaland Corp. plans to raise up to P3 billion from a follow-on offering of preferred shares this month to fund the development of a new condominium project in Metro Manila as it slowly builds its residential portfolio.
In an advisory on Monday, the Philippine Stock Exchange said it had approved Arthaland’s application to offer 4 million preferred shares at P500 each. In case of high demand, an extra 2 million shares would be issued.
While part of the funds raised from the offering would be used to refinance a short-term loan, Arthaland, whose flagship projects include office buildings such as Arthaland Century Pacific Tower, said it would also help partially fund its investment into a company that would develop Project Teal.
Based on its Oct. 17 preliminary prospectus, Arthaland is acquiring a 3,700-square-meter residential property in northern Metro Manila that will be developed into a two-tower, high-rise condominium.
Shifting focus
Arthaland has yet to disclose in which city it had planned to build Project Teal, saying only that the first tower would be launched by the second quarter of 2025 and completed by 2029. The second tower would be completed in 2031.
Arthaland has recently been injecting funds into its subsidiaries and affiliate companies as it shifts its focus to residential developments given the office space’s current weakness.
Earlier this month, Arthaland said it would inject an additional P18 million into Bhavya Properties Inc., where it owns a 60-percent stake, to develop a residential project in Makati City.
Postpandemic
Bhavya’s 32-story Eluria condominium complex is described as a “low-density, multicertified, ultra-luxury” development.
In June, Arthaland vice chair and president Jaime Gonzalez said their shift to the residential market was due to the decline in office space occupancy as more companies preferred remote work arrangements in the postpandemic.
Real estate investment management firm Colliers Philippines reported the office vacancy rate in Metro Manila stood at 18.3 percent in the first six months of the year.