• Araneta Properties raises P437M for land purchases

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    PUBLICLY listed Araneta Properties Inc. is raising P437 million to fund the purchase of more lots, particularly in Bulacan and Ilocos region, to improve the company’s realty business.

    In a disclosure to the Philippine Stock Exchange on Monday, the company said it clinched a private placement deal on November 16 with Gregorio Araneta Inc. (GAINC) for the latter to subscribe to 390 million common shares from the unissued capital stock of Araneta Properties.

    GAINC said it agreed to deposit P437 million upon the execution of the agreement, and authorizes Araneta Properties to apply the deposit in full payment for the subscription of shares “upon the approval of the additional listing shares by the Securities and Exchange Commission and the Philippine Stock Exchange.”

    “The reason for the transaction is primarily for expansion of investments, specifically land acquisition,” Araneta Properties stated.

    The company is presently looking to consolidate 10 to 20 kilometers radius from its existing Colinas Verdes Project, all located in San Jose Del Monte Bulacan area.

    The company said it also plans to acquire properties in the Ilocos region.

    Araneta Properties’ net profit for the first nine months of 2015 grew by 17.6 percent to P29.5 million from P16.4 million last year.

    The company said sales from real estate declined to P127.6 million from P147 million posted in the same period last year.

    Araneta Properties said it was able to gain an increase in its net profit despite the slowdown in sales by “way of holding some inventory for much higher price opportunity.”

    The decrease in sales, it said, was the effect of a marketing strategy being implemented by the company, where some of inventory is put on-hold, waiting to fetch a much better price.

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