PROPERTY developer ArthaLand Corp. on Thursday said it created a subsidiary, which will be used to acquire other properties for development.
The company said in its disclosure to the Philippine Stock Exchange, it incorporated Zileya Land Development Corp. and subscribed to its 499,995 common shares at P100 per share.
“This wholly owned subsidiary will be the vehicle used to acquire another property for [Arthaland’s] upcoming project,” the company said.
Earlier this year Dutch firm Rock and Salt BV invested in Arthaland’s newly-formed subsidiary Cebu Lavana Land Corp., a firm that owns two parcels of land in Cebu City.
Arthaland said Rock and Salt subscribed some 214,351 common shares at P100 apiece and 118,982 preferred shares at P100 each.
At the said rate, the Dutch firm infused P33.33 million into Arthaland’s unit.
“The foregoing subscription entitles Rock and Salt BV two seats in the five-man board [of directors] of CLLC [Cebu Lavana],” the company said.
The property is on the Cebu IT Park area, where multinational business process offices currently operate. Arthaland is mainly focused on boutique developments, as well as joint-venture developments.
Other units of the company include Cazneau Inc., incorporated in July 2008; Emera Property Management Inc., also established in July 2008 and serves as the company’s property management arm; Manchesterland Properties Inc., the registered owner of the 6,357-square-meter property located along McKinley Parkway on which Arya Residences stands; and Urban Property Holdings Inc., incorporated in January 1995, established for the development of a housing project on its 33-hectare property in Calamba, Laguna.
Last year the company had a net income of P223.83 million, some 10-percent higher than the previous year’s P203.75 million.
Revenue from real-estate sales dropped 23 percent to P1.58 billion from the previous year’s P2.05 billion, as most of the cash came from the remaining unrecognized revenues from Arya Residences located in Fort Bonifacio in Taguig.
“Substantial portions of sales from the project were already recognized in prior years,” the company said.
by VG Cabuag | Business Mirror | May 5, 2016