Boutique property developer Arthaland Corp. said Tuesday it plans to spend up to P30 billion over the next five years to aggressively expand its leasing and residential portfolio.
Arthaland treasurer Leonardo Po said in an interview following the listing of the company’s P2-billion preferred shares that the company lined up five office, commercial and residential projects that would boost gross floor area to 500,000 square meters from the current 110,000 sqm.
He said of the P30-billion capital expenditures, P24 billion would be used for project development and P6 billion for land acquisition.
Po said the company’s expansion plan was in line with a positive outlook on the real estate market.
“There is still good momentum in the real estate market today,” Po said.
Under the five-year plan, Arthaland will construct two office buildings in Bonifacio Global City and Cebu, two residential developments in Makati and Laguna and a commercial development in southern Luzon.
Three more real estate projects are currently under negotiation, said Arthaland vice president for strategic funding and investments Sheryll Verano.
Arthaland said with these projects, it expected recurring income to account for 35 percent to 40 percent of the total income.
Arthaland recently launched Cebu Exchange, the company’s first commercial development in Cebu IT Park in Lahug. The project offers 51,000 square meters of office space for sale to business process outsourcing companies.
It is also in the process of acquiring two properties, a 2,000-sqm lot in Makati to be developed into a residential condominium and 3,000-sqm. property in south of Metro Manila.
Funding for the projects will partially come from P2-billion preferred shares offering.
Po said the company also considered issuing the remaining preferred shares which were placed under shelf registration worth P1 billion.
Arthaland is majority-owned by Century Pacific Group Holdings Inc. of the Po family.