Arthaland to inject P45M in subsidiary

REAL estate developer Arthaland Corp. said Thursday it planned to infuse P45 million in subsidiary Bhavya Properties Inc. to help finance an ongoing residential development in Makati City.

This followed board approval for the company’s subscription to up to 450,000 preferred shares of Bhavya at a price of P100 each, Arthaland told the stock exchange on Thursday.

The subsidiary is currently developing Eluria, a residential condominium in Makati City.

The transaction is expected to provide additional funds for the project’s working requirements until its target completion next year “while ensuring compliance with all its financial covenants.”

Arthaland owns 60 percent of Bhavya while the remaining stake is held by Narra Investment Properties Pte. Ltd., a private company based in Singapore.

“Narra will also subscribe to Bhavya’s preferred shares to the extent of 300,000 [shares] at the price of P100 per share, or a total of P30 million,” the listed firm said.

Arthaland in October disclosed plans to subscribe to 663,000 preferred shares of Bhavya, with Narra subscribing to up to 442,000 shares.

As of end-September 2023, the property developer, owned by the Po family, had delivered a net income of P971.3 million, up 47 percent from the P658.7 million registered a year earlier.

Consolidated revenues for the period had nearly tripled to P4.4 billion from P1.5 billion, mainly attributed to gains recognized from Eluria and higher sales from another residential condominium, Lucima.

Arthaland, formerly EIB Realty Developers Inc., is the developer of Arya Residences, ArthaLand Century Pacific Tower, Cebu Exchange, Savya Financial Center, and Sevina Park.

The company’s shares closed unchanged at 50 centavos each amid a 0.69 percent rise for the benchmark Philippine Stock Exchange index.