Vol. XXI, No. 173 [Business World Online ]
Friday, April 04, 2008 | MANILA, PHILIPPINES
LISTED Sta. Lucia Land, Inc. has agreed to sell a total of 2,400 square meters of land beside the Prudential Bank Building along Ayala Avenue to Alphaland Corp. for P820 million.
A contract to sell and buy was entered into last April 1, Sta. Lucia Land corporate secretary Patricia O. Bunye said in a regulatory filing.
Alphaland remitted a P100 million downpayment with the execution of the contract.
The balance of P720 million will be paid on May 31, Sta. Lucia Land said.
"The corporation intends to use the funds generated from the sale of its Ayala properties primarily to finance the corporation’s real estate projects in Quezon City, Cavite and Iloilo among others," Ms. Bunye said.
The consideration for the sale, she said, was based on the current fair market value of the Ayala Avenue properties as negotiated between Sta. Lucia Land and Alphaland.
Yesterday, Sta. Lucia Land shares closed unchanged at P1.16.
The company formerly known as Zipporah Realty Holdings, Inc. held two parcels of land at 1,200 square meters each. Under the deal, it agreed to sell and transfer all of its rights, title and interest in the properties.
The property is the former site of the unfinished Associated Bank building, which is now a vacant lot at the northeast side of Ayala Avenue between Herrera Street and Paseo de Roxas.
Last year, the Securities and Exchange Commission approved the amended articles of incorporation and bylaws of Zipporah Realty.
As Sta. Lucia Land, it will engage in real estate development, with projects such as subdivisions, industrial parks, recreational farm lots, golf courses, and memorial parks.
It will also engage in vertical developments such as residential villas, townhouses, residential, office or mixed-use condominiums, commercial or office buildings, specialty or build-to-suit buildings, hotels, and shopping malls.
The company will have an authorized capital stock of P2 billion with a par value of P1. It will then increase its authorized capital stock to P16 billion divided into 16 billion shares to pay off debts by its parent company.
"With the extensive corporate reorganization of Sta. Lucia Land, Inc., the company aims to become one of the country’s leading developers of real estate projects. The company has outlined strategies to reinvent and reinvigorate the company’s operation to be an active player in the real property sector," the company said earlier.
BusinessWorld earlier reported that Alphaland had obtained approval to increase its authorized capital to P1 billion from P10,000 to increase funds for projects.
Alphaland Holdings (Singapore) Pte. Ltd. and Filipino companies Masrickstar Corp., Boerstar Corp. and Asurestar Corp. subscribed to 249.99 million shares and paid P249.99 million.
The company’s new authorized capital stock will consist of one billion shares with a par value of P1 each. Masrickstar will own 48% of the property company while Singaporean firm Alphaland Holdings will control 40%.
Boerstar, Azurestar, former Finance Undersecretary Eric O. Recto, former trade minister Roberto V. Ongpin, Mario A. Oreta, Rodolfo Ma. A. Ponferrada, Josephine A. Manalo and Ms. Torres own 12% of Alphaland.
In 2007, Alphaland bought the unfinished 20-storey building beside Dasmarinas Village on the corner of Epifanio de los Santos Avenue and Chino Roces Avenue for P1.2 billion. — Ruby Anne M. Rubio
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