PHILIPPINE REALTY and Holdings Corp. (PhilRealty) said it will be acquiring P84.24 million worth of condominium units from Meridian Assurance Corp., which is expected to provide rental income of at least P3 million a year.
In a disclosure to the stock exchange on Wednesday, the property developer said it secured board approval to proceed with the purchase of properties from Meridian in exchange for stocks of the company.
This will include a total of 135.87 million shares priced at 62 centavos apiece, and will be taken from the unissued portion of the company’s authorized capital stock. The price is based from the rounded-off average of the stock price in the 90-day period starting Jan. 25 to April 21.
Meanwhile, PhilRealty said it has submitted a bid to purchase six lots in Baguio City comprising 16,158 square meters (sq.m.) for a price of P300.5 million, or P18,598 per sq.m.
The property called El Retiro is located near city landmarks including the Mansion House, Wright Park, and Mines View Park.
PhilRealty has just come out of corporate rehabilitation in March 2015. In February of last year, the company underwent an equity restructuring in order to wipe out a P1.7-billion deficit. This prompted the company to reduce the par value of its shares from P1 to 50 centavos and bring down its authorized capital stock from P8 billion to P4 billion.
Incorporated in 1981, PhilRealty is engaged in the acquisition, development, sale, and leasing of real estate and personal properties. Some of its developments include The Alexandra, the Philippine Stock Exchange Centre, and La Isla Condominiums, all in Pasig City.
The company booked a P44.4-million net loss in the first quarter of 2017, higher than the net loss of P26.9 million it recorded in the same period a year ago.
Shares in PhilRealty rose by two centavos or 3.17% to 65 centavos at the stock exchange on Wednesday. — Arra B. Francia
