MANILA, Philippines - The tourism estate developer of property tycoon Andrew L. Tan is listing an additional 2.5 billion shares in the local bourse following a P5.65-billion fundraising last year.
In a regulatory filing, Global-Estate Resorts Inc. (GERI) said it will increase its listed shares in the Philippine Stock Exchange on Jan. 7.
“The 2.5 billion common shares were issued at P2.26 per share for a total transaction value of P5.65 billion, which was issued from the increase in the company’s authorized capital stock as approved by the Securities and Exchange Commission on July 24,†GERI said.
Following the transaction, GERI’s listed shares jumped to 10.98 billion from 8.48 billion.
In June, flagship property firm Megaworld Corp. subscribed to 2.5 billion new GERI shares. It forms part of GERI’s plan to double its authorized capital stock to P20 billion.
Tan spent nearly P8 billion to fold real estate units into Megaworld, which now owns 100 percent of Suntrust Properties Inc., 23 percent of GERI and 80 percent of Empire East Land Holdings Inc.
GERI, a developer of integrated tourism projects in Boracay, Tagaytay and Batangas, contributed P53 million to the January to September earnings of Tan’s Alliance Global Group Inc (AGI), higher than the P35 million last year.
The company allotted P3.5 billion last year for the development of tourism estates Twin Lakes in Tagaytay and Boracay Newcoast, which are expected to hit P8 billion in reservation sales.
In the first half of 2013, GERI posted P5.6 billion in reservation sales, already 70 percent of its full-year target of P8 billion. The growth was driven by new offerings and sale of existing inventory.
To date, GERI has a large landbank at 2,141 hectares, of which 1,014 hectares are under joint venture.
Parent firm AGI is also into property (Megaworld Corp.), liquor (Emperador Distillers, Inc.), fastfood (McDonald’s franchise operator Golden Arches Development Corp.) and hotels and casino (Travellers International Hotel Group Inc.).