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P.A. Alvarez Properties Scores another Landmark Offering by Issuing Perpetual Notes

P.A. Alvarez Properties and Development Corp (P.A. Properties), one of the largest developers of low- to medium-cost housing communities in the last 24 years in the provinces of Laguna, Cavite, Batangas, Bulacan and Pampanga, has successfully tapped the domestic equity capital market by issuing the first tranche of its Perpetual Notes offering.

The proceeds will be used to partially finance the company’s property development and land banking initiatives as part of its expansion plans in the next five (5) years. P.A. Properties is well-positioned to address part of the huge housing backlog which is expected to reach 10 million units in the socialized, economic and low-cost housing segments by 2030.

In 2017, P.A. Properties entered into a Joint Venture Agreement (“JVA”) with Hankyu Hanshin Properties Corp., (HHPC) which is part of a Japanese conglomerate – the  Hankyu Hanshin Holdings Group. The first JVA covers the development of Idesia 1 – an 11-hectare property in Dasmarinas Cavite.   This was followed by the signing of two other JVA’s with HHPC in November 2018 for the development of an additional 26 hectares residential and commercial project in Dasmarinas, Cavite and a 17-hectare housing and commercial project in Lipa, Batangas.  The Osaka-based conglomerate has diverse business interests in Transportation, Real Estate, Entertainment and Communications, Travel, International Transportation, and Hotels.  Hankyu Hanshin Properties Corp. has committed to build 2–3 townships per year for the next five years.

“The successful launch of the Perpetual Notes program provides us additional leg room to acquire more properties to meet our five (5) year development plans. We are truly grateful to PNB Capital & Investment Corp. and the institutional lenders who supported us in the first tranche of this issuance. Given the positive reception of the market, we’re aiming to issue the final tranche in the first quarter of 2019.” P.A. Properties Chairman Romarico “Bing” Alvarez said.

“As the Issue Manager and Lead Arranger, we are delighted to be able to take part in P.A. Properties’ fund raising activity considering that this is a landmark issuance – the second of its kind ever issued in the domestic capital market. Moving forward, we see that more and more companies will issue Perpetual Notes as the market becomes familiar with hybrid securities.” said PNB Capital President & CEO, Gerry B. Valenciano.

The Perpetual Notes were issued under Rule 10.1 of the 2015 SRC Rules as an exempt transaction. In this regard, the securities were offered only to Primary Institutional Lenders.

 

About P.A. Properties:
For 24 years, Laguna-based P.A. Alvarez Properties and Development Corporation (P.A. Properties) has established itself a name in the competitive Philippine real estate industry by enabling the public to have their dream homes at affordable rates and payment schemes.

The company, which has already built about 19,000 housing units in Laguna, Batangas, Bulacan, Cavite, Pampanga, and Metro Manila, continues to embark on strategic expansion efforts to further build 15,000 more housing units in the next five years, thereby creating comfortable, safe, and joyful Filipino communities.

P.A. Properties, which has a capitalization of PHP3.3 billion (as of October 2018), acknowledges that partnering with Hankyu Hanshin Properties Corporation in developing ldesia would not only help the company grow its experience, expertise, and technology, but it will also help the company realize its advocacy of helping ease the more than 6 million housing backlog in the Philippines.

For more information about P.A. Properties, visit www.paproperties.com.ph