Exportbank sells Exportbank Plaza for P2.62 billion

MANILA, Philippines - Export and Industry Bank (Exportbank) sold its rights and interests in Exportbank Plaza to Arthaland Corp. for P2.62 billion, bank assistant corporate secretary Riva Khristine V. Maala said in a disclosure. The listed bank was asked by the Philippine Stock Exchange to furnish additional details on the sale of its remaining non-core assets to Arthaland, which was formerly known as EIB Realty Developers, Inc. Maala said the purchase price, which was based on the appraisal by Jones Lang LaSalle, will be payable in installments and "upon happening of certain conditions subsequent." "The bank recognized a gain on the sale amounting to P836.39 million gain. It will use the sale proceeds in its operations," she added. Both Arthaland and Exportbank could not provide copies of the agreement, saying the sale and purchase agrement executed included confidentiality provisions. Maala, who is also the assistant corporate secretary of Arthaland said the listed property developer would use capital infusion from its investors for the acquisition of Exportbank Plaza. "Its acquisition of Exportbank Plaza was made in the ordinary course of business. (Arthaland) has recently undergone a capital reorganization which ended in the increase of its authorized capital stock to ensure that it would have enough capital stock in preparation for capital infusion from potential investors which would enable it to develop its existing properties given the favorable developments in the real estate sector," she said. -GMANews.TV