Arthaland Corp., a listed boutique real estate developer, on Monday launched a fundraising exercise that aims to raise P3 billion from the sale of preferred shares.
Arthaland kicked off on Monday the sale of 4 million cumulative, non-voting, non-participating, non-convertible, and redeemable peso-denominated Series F preferred shares at a price of P500 each. The preferred shares carry a dividend rate of 7.3260 percent, and its sale will end on 4 November. A total 2 million preferred shares have been set aside to cover oversubscription.
The net proceeds from the preferred shares sale will refinance a short-term facility used to fund the redemption of the Series C preferred shares as well as partially fund the acquisition and development of Project Teal. In case the oversubscription option is fully exercised, the funds will fully finance Project Teal, partially fund loan repayments and other general corporate purposes.
Project Teal is a twin-tower residential project in Metro Manila with a gross floor area of 52,290 square meters. The first tower is expected to be completed in 2029 while the second tower is scheduled for completion in 2031.
The preferred shares are tentatively scheduled for listing on the Philippine Stock Exchange on 14 November.
BDO Capital & Investment Corp. is the lead underwriter of the Arthaland preferred shares offer.
