MANILA, Philippines – Arthaland Corporation (PSE:ALCO) clarifies the BusinessWorld-published article entitled “Arthaland to spend up to P30 billion in next 6 years” dated December 6, 2016.
According to the disclosure of Arthaland with the Philippine Stock Exchange (PSE), the values specified by the news article are estimates of the firm’s project costs at the moment. A more accurate forecast of the plan’s value would be disclosed once the unveiling of developments is done.
Approximately, the proposals would cost about P20 billion for the Makati Residential Project, Cebu Exchange Project, Biñan Project in Laguna, and South of Metro Manila Project. The market’s situation would be a ground for Arthaland to decide in developing more plans in the queue. The proposed undertakings are still in the investigative phase. In the case the company decides to pursue their developments, the cost may advance to P30 billion.
Arthaland emphasized that it would prefer to sustain a leasing portfolio, which is eyed to level with the preset overhead costs at the minimum. The long-term target of the firm is from 35 percent to 40 percent, which streamlines the corporation’s statements during the trading participants’ briefing.
Relative to the published news, the company will spend P30 billion to compensate for properties and purchase land towards 2022. The objective of Arthaland is to acquire additional leasable undertakings that may expand its revenue base to 40 percent during the same period.
The P20 billion portion of the budget will support the Taguig, Laguna, Makati, Cebu, and south of Manila projects. There are five planned developments in the said areas. Alternatively, P4 billion will be allocated for undisclosed projects, whereas P6 billion will be allotted for buying land.
Presently, Arthaland has a total gross floor area (GFA) of 110,000 square meters (sqm). The firm wills to increase its portfolio up to 520,000 sqm. Fifty percent of the total area is intended for the residential sector. Alternatively, the rest will be for its office business.
The series of property developments includes Arthaland Century Pacific Tower, which will cover 34,000 sqm GFA and confine 30 floors in Bonifacio Global City, Taguig. The tentative completion date of the tower is in the first six months of 2017. Arthaland is planning to lease the office tower.
Apart from the 30-storey tower in Taguig, the property development is also intending to build a 38-storey office building until the second quarter of 2017. The 107,000 sqm construction will partially be set for business process outsourcing (BPO) locators in Cebu. Arthaland also projects to offer 85,000 sqm of the total GFA, which is termed as Cebu Exchange.
In Southern Manila, the company will purchase 3,000 sqm property for BPO firm-dedicated medium-rise office buildings.