Upscale property developer Arthaland Corp. has raised P2.5 billion from its follow-on offering of preferred shares to fund the development of a new residential project in Metro Manila.
The Po family-led real estate firm on Thursday listed the shares, which carry an initial dividend rate of 7.326 percent per annum, on the Philippine Stock Exchange. Unless Arthaland redeems the shares, the rate will increase after five years.
Arthaland sold 4.96 million shares at P500 each.
READ: Arthaland seeks to raise P3B from sale of shares
Proceeds will fund the development of a two-tower residential project in the midmarket segment.
“This will supplement Arthaland’s larger, multiphased projects, which will provide a steady pipeline of sustainable, master-planned projects that will be launched over the next 10 years and beyond,” the company said in a statement.
This marks the fourth of such fundraising activity by Arthaland.
The company currently has a gross floor area of 456,000 square meters, growing nearly six times in the past five years.
Earlier, Arthaland said it was acquiring a 3,700-square-meter residential property in northern Metro Manila that would be developed into a high-rise condominium. The first tower will be launched by the second quarter of 2025.
In June, Arthaland vice chair and president Jaime González said the shift to the residential market was due to the decline in office space occupancy as more companies preferred remote work arrangements postpandemic.