Arthaland seals residential property venture with Mitsui unit
MANILA, Philippines — Developer Arthaland Corp. has completed the sale of a 40-percent stake in residential property arm Zileya Land Development Corp. to a unit of Japanese real estate giant Mitsui Fudosan Co. Ltd.
In a disclosure, Arthaland said it had transferred and conveyed to SEAI Metro Manila One Inc. (SEAIMMO) 200,000 common shares and 2.84 million Series B preferred shares in Zileya, along with P216 million in advances. The total consideration is P724.83 million.
The transaction marks the consummation of the joint venture and investment agreements entered into by Arthaland, its wholly owned subsidiary Zileya and SEAIMMO.
READ: Arthaland buys QC properties for new condo
These agreements cover the development, construction and sale of a residential condominium project located along Arnaiz Avenue in Legaspi Village, Makati City.
SEAIMMO is a domestic corporation wholly owned by Mitsui Fudosan (Asia) Pte. Ltd., a Singapore-incorporated subsidiary of Japanese real estate giant Mitsui Fudosan Co. Ltd.
Following the completion of the share sale, two representatives of SEAIMMO were elected to Zileya’s board of directors during a meeting held on the same day.
READ: Arthaland completes P2.5-B fundraising, new residential dev’t coming
Residential foray
The closing follows Arthaland’s earlier disclosure on Nov. 4 regarding the execution of the joint venture and investment agreements, which outlined the parties’ roles in undertaking the Makati-based residential development.
The December transaction formalizes SEAIMMO’s equity position in Zileya and monetizes Arthaland’s investment and shareholder advances in the subsidiary.
READ: High-end residences still seen to buck Philippine property slump
Arthaland did not disclose how the proceeds from the sale would be allocated but said the transaction formed part of its broader portfolio and capital management initiatives.
The company is known for its focus on sustainable and premium real estate developments across Metro Manila and key provincial locations. INQ
