NICHE property developer Arthaland Corp. has set up a new subsidiary in preparation for a new project in the future.

In a disclosure to the stock exchange Friday, the listed company said it has incorporated Bhavana Properties, Inc. It has also subscribed to 24.999 million common shares in Bhavana, priced at P1 each.

“The wholly-owned subsidiary will be the vehicle used to acquire another property for an upcoming project the details of which will be disclosed as and when appropriate,” the company said.

The company raised P1 billion from the issuance of preferred shares last month, which it plans to use for land acquisitions and for ramping up operations in the future.

Arthaland earlier said it is in the final stages of acquiring two properties in Manila and Cebu, as part of efforts to grow its portfolio by five times in 2022. It targets to have 550,000 square meters of developed land under its network by then.

Arthaland recently started construction for its 8.1-hectare mixed use development in Binan, Laguna, its first township project. It will house 108 villas scheduled for completion in 2021.

The company remains on the lookout for more land acquisitions in the CALABARZON area and other key cities in the country in the future, in addition to the 50 hectares it currently has.

Arthaland’s net income attributable to the parent surged 185% to P201.8 million in the first quarter of 2019, while gross revenues also jumped 337% to P466.35 million.

Shares in Arthaland dropped 1.87% or two centavos to close at P1.05 each at the stock exchange on Friday. — Arra B. Francia