Low-cost housing developer IRC Properties Corp. is increasing its authorized capital stock to P3 billion from P1 billion to develop more housing projects and fund an expansion into higher end commercial, retail and office developments.
“In our stockholders’ meeting last year, the shareholders approved the increase in the authorized capital stock to P3 billion from P1 billion to develop more projects,” President Esteban Peña Sy, told The Manila Times.
In a disclosure on Monday, the company said it is seeking approval from the Securities and Exchange Commission to increase its authorized capital by P500 million to P1.5 billion from P1 billion.
“The P500 million is a part of the plan to increase it to P3 billion. The first P500 million will fund the three projects we plan for the year. We feel that’s enough. Depending on the market take up, we will add more,” Peña Sy said.
This year’s projects include one low-cost housing project, one affordable housing project under a tie up with the Home Development Mutual Fund or PagIBIG Fund, and the development of “higher end, two-story housing units.” These are all located within the company’s 2,200hectare lot in Binangonan, Rizal.
“We are building low-cost and affordable housing, but eventually will build higher end projects as well as commercial projects like the [business process outsourcing]offices and we’re trying to talk to mall developers… We have reserved lots for the low-cost, for higher end projects and commercial developments,” Peña Sy said.
“It will be like township. That’s why we need to increase capital to P3 billion. For now, we feel the P500 million is enough for the three projects,” he added.
The company has previously programmed up to P1 billion in capital expenditures this year for new and ongoing projects in its Binangonan land bank. The application for P500-million additional authorized capital will fund the projects in the second half of 2015.
Some 60 hectares of the 2,200 hectare Binangonan property are already hedged by several property firms.
These developments include a 15.12hectare joint venture with Dreamhauz Management and Development Corp. signed in August 2010; an 8.72hectare joint agreement with Dell Equipment & Construction Corp. forged in July 2012; an 18-hectare lot sold to Hundred Lake Development Corp. in September 2013; as well as 18 hectares to Ayala unit Amaia Land Corp. for low-cost houses in cooperation with PagIbig.
Aside from the Ayala group via Amaia, the company is “looking for partners” to help execute plans for the Binangonan lot. “Some groups have expressed interest – both listed and unlisted property developers – to develop certain parts of the Binangonan land. But there’s nothing concrete yet,” Peña Sy said.