IRC Properties secures funding for Binangonan real estate venture

Listed real estate firm IRC Properties Inc. plans to raise P178.08 million from the sale of new shares through a private placement.

IRC Properties said Tokyo-based firm Rizal Partners Co. Ltd. has agreed to subscribe to 127.2 million common shares of the company at P1.40 apiece.

The company said the shares, which would be fully paid for in cash by Rizal Partners, would be issued as a private placement to be taken out from its planned increase in authorized capital stock.

The capital hike was earlier given the green light by the stockholders and the board of directors of IRC.

“The necessary applications and/or notices for and in connection with the increase of authorized capital stock and amendment of the articles of incorporation of IRC, and the listing of the shares will in due course be filed with the Securities and Exchange Commission and the Philippine Stock Exchange,” IRC said.

Last year, IRC Properties announced a partnership with another Japanese-backed property firm to fast-track the development of its large property in Rizal province.

Tamurakenzai Group infused an initial amount of $2 million under a joint development deal to fund the Rizal project which is expected to be completed by next year.

IRC Properties acquired a 2,200-hectare property in Binangonan, Rizal in 1978 which marked its shift from oil exploration to real estate development.

In 2013, the firm sold 183,729 square meters of the Binangonan property worth P87.27 million to Filipino-Chinese firm Hundred Lake Development Corp. that is backed by the Lek Yuen Group of Nanjing.