PROPERTY developer Arthaland Corp. (ALCO) has formed a land acquisition vehicle and infused P50 million of capital into the newly formed subsidiary.
ALCO said it recently incorporated its wholly owned subsidiary, Savya Land Development Corp., and subscribed to 499,995 of its common shares at P100.00 each, for a total investment of P50 million.
“This wholly-owned subsidiary will be the vehicle used to acquire another property for ALCO’s upcoming project, the details of which will be disclosed as and when appropriate,” ALCO said in a disclosure to the stock exchange on Tuesday.
Arthaland has set a P30-billion capital expenditure to fund its expansion programs in the next five years. Of the amount, P24 billion will go to the development of residential and office buildings and P6 billion will be used for land acquisitions.
The company aims to expand its current footprint of 110,000 square meters (sqms) of floor space to more than 520,000 sqms by 2022. It also aims to increase the revenue share of its commercial offices to 40 percent from 30 percent at present, with the balance to come from its residential condominiums segment.
In December last year, the company raised P2 billion from a preferred share sale as part of its P3-billion share sale plan under shelf registration program with the Securities and Exchange Commission (SEC).
Arthaland is engaged in the development of residential, commercial, leisure, and industrial property projects.