THE Securities and Exchange Commission has allowed Philippine Realty and Holdings Inc. (Philrealty) to slash the par value of its shares to P0.50 from P1, as part of the listed firm’s efforts to make its stock more attractive to investors.
In a disclosure to the Philippine Stock Exchange on Monday, Philrealty said the approval resulted in the reduction of its authorized capital stock to P4 billion from P8 billion.
The quasi-reorganization is expected to facilitate the company’s P5-billion stock rights offering, which was announced in 2014 to fund its business growth plans.
The company wants to be a niche developer by taking advantage of the rising demand in vertical residential developments like its One Balete project in New Manila. The five-tower development is presently on its second tower, Sky Villas.
Sky Villas at One Balete, formerly Andrea North, will have 113 residential units in a gated, private, and exclusive enclave called One Balete, with a scheduled turnover by the second half of this year.
Such project was only a few of the businesses left in the company after incurring substantial debts as a result of the 1997 Asian financial crisis that sent it under rehabilitation.
The company officially came out of the 2000 court-approved rehabilitation plan in March 2014.
The company is also looking at developing the 6,400-square-meter Project Cube 5th Avenue, a mixed-use project in Bonifacio Global City.
Project Cube and One Balete are among the four major projects that the realtor is developing, along with the redevelopment of its 5,900-square-meter El Pueblo in Ortigas business district that will have a retail anchor and a township leisure estate in either Tagaytay or La Union.
Philrealty tapped CPG Corp. of Singapore, the designer of Changi Airport Terminals and Sands by the Bay, to prepare the master plan for One Balete and Project Cube 5th Avenue.
Company officials recently said they are also eyeing an interest in waste-to-fuel business to jump-start its diversification plans.
Andrew Alcid, Philrealty president, also said they are also looking at investing in healthcare, education, financial services, and energy business.
Philrealty is one of the biggest developers in Manila in the 1990s, developing the Philippine Stock Exchange Center building in Ortigas and other projects like “The Alexandra,” a luxury mid-rise residential condominium complex in Ortigas, and “La Isla,” an exclusive upscale condominium with 28 units on a 20-storey building.
But Philrealty then incurred a total debt of P2.2 billion after being hard-hit by the Asian financial crisis.