PHILIPPINE Realty and Holdings Corp. is increasing its authorized capital stock to accommodate the issuance of new, primary shares to two companies in exchange for their “prime real properties,” it told the stock exchange on Friday.
“The transactions shall provide [PhilRealty] with an opportunity to acquire quality, premium real estate in the fastest growing central business districts… which can be a source of future income from development projects and/or as a source of recurring rental income,” the company said.
A proposed amendment to PhilRealty’s articles of incorporation involves the issuance of new common shares at 4,177,777,778 to Greenhills Properties Inc. (GPI), and 150,396,296 to Meridian Assurance Corp. (MAC). The shares will be issued from the increase in the authorized capital stock.
GPI will be contributing two vacant lots in Bonifacio Global City (BGC): Lot 1 Block 8 measuring 1,600 square meters (sq.m.) at the corner of 6th Avenue and 24th Street; and Lot 4 Block 8 also 1,600 sq.m. at 6th Avenue corner 25th Street.
Lot 1 Block 8 is registered under the name of GPI, which also acquired Lot 4 Block 8 from its wholly owned subsidiary, Lochinver Assets Inc. through a merger approved by the Securities and Exchange Commission (SEC), with GPI as the surviving entity.
The two properties to be contributed by GPI carryaverage fair market value of P2.256 billion.
MAC will be contributing three office condominium units and six parking units in the Philippine Stock Exchange Centre, formerly Tektite Towers, in Ortigas Center with a total floor area of 699 sq.m. These are valued at P44.961 million.
It will also contribute two commercial condominium units and two parking units in Icon Plaza in BGC wit a total floor area of 223 sq.m. The combined value of these properties is P36.253 million.
The transaction was approved by PhilRealty’s board on April 18. It requires a number of regulatory approvals and notices, including authorization from the SEC on the increase in authorized capital stock to P8 billion from P4 billion. The shares have a par value of P0.50 apiece.
“The BGC properties to be contributed by GPI are being tentatively planned to be developed into luxury residential condominium building for sale and another residential condominium building for lease,” PhilRealty said.
It said the office and commercial condominium units, as well as parking units, that will be contributed by MAC will be leased out to generate recurring income.
GPI currently owns 35.67% of the total outstanding shares of PhilRealty while MAC owns 0.13%. PhilRealty owned 30% of MAC before its board approved the sale of the stake in January this year.
PhilRealty was up 1.82% at P0.56 on Friday.
