IRC share sale seen to boost real estate, infra business
IRC Properties Inc. expects to boost its real estate and infrastructure businesses using proceeds from its recent share sale.
Aggregate Business Group Holdings (ABG) and the Auspicious One-BeltOne-Road Fund, a Cayman Islands corporation recently acquired shares in IRC.
Proceeds from the share issuance would be used for real estate development and capital for infrastructure projects, IRC said in a disclosure yesterday.
Total proceeds amounting to P4.95 billion will be used for development and house construction for its real estate projects.
The projects will be implemented from November this year to 2020.
However, bulk of the proceeds or P4 billion will be allocated for working capital for infrastructure projects. These projects will be undertaken from November 2018 to October 2019.
ABG acquired 4.1 billion shares of IRC at P1 per piece or P4.6 billion. Auspicious One-Belt, on the other hand, acquired 368 million IRC common shares for P404.9 million.
IRC is a company chaired by businessman Antonio Tiu.
It is the proponent of the $3.7 billion Makati IntraCity Subway project which has hurdled the Swiss challenge stage last month and hopes to be break ground in November or December.
The unsolicited proposal, which was submitted to the city of Makati last May, will connect key points in Makati City such as the current central business district along Ayala Avenue, Makati City Hall, the Poblacion Heritage Site, the University of Makati, Ospital ng Makati and the other new business districts within the city.
The proposed subway system will have up to 10 airconditioned, underground island stations that can accommodate up to six car trains, with a room for over 200 persons per car.
It is expected that over 700,000 passengers per day will be accommodated and served by the mass transport system.
IRC recently applied to increase its authorized capital to P19.5 billion from P1.5 billion as it undertakes the project.