SRDC had planned for the real estate to be a source of recurring rental income or future income from development projects including resort hotels, tourist-related attractions, commercial areas with upscale residential and serviced residential apartments and office buildings.

The Manila Bay Development Corp. (MBDC) is dropping plans for a backdoor listing after notifying listed developer Supercity Realty Development Corp. (SRDC) it will not pursue a property-for-share swap agreement.

“In a letter received by the corporation on 16 December, 2019, MBDC and (president) Mr. (George T.) Chua communicated to the corporation that due to unfavorable market conditions, they have decided not to proceed with the Property-for-Share Swap Agreement. Thus, the backdoor listing will no longer push through,” SRDC told the stock exchange on Tuesday.

SRDC said it will continue serving its institutional and corporate clients and focus on constructing horizontal residential houses and land development works for residential subdivisions.

In June this year, SRDC announced its bid to increase its authorized capital stock to P1.5 billion with 1.5 billion shares with a par value of P1 apiece, from P155 million divided into 155 million shares with a par value of P1 apiece.

The increase will allow it to acquire a premium real estate along Roxas Boulevard within the reclamation area of the Bay City development in Parañaque City, owned by MBDC. This would have been MBDC’s key to be listed at the Philippine Stock Exchange instead of a direct listing.

The value for the issuance of 990 million common shares was disclosed to be at least P1.386 billion.

MBDC is involved in developing and leasing reclaimed raw land in the central business part II complex in Parañaque City. It acquired several parcels of land in the area over 30 years ago which has increased in terms of value, SRDC said.

SRDC had planned for the real estate to be a source of recurring rental income or future income from development projects including resort hotels, tourist-related attractions, commercial areas with upscale residential and serviced residential apartments and office buildings.

“The sites’ proximity to entertainment and gambling clusters in the Manila Bay area would be an advantage. The concentration of hotels and cultural entertainment activities in the area would create a major attraction for locals and tourists alike,” SRDC said in an earlier disclosure.

Incorporated in 2000 as a real estate development firm, SRDC primarily engages in construction as well as related services and activities. It currently caters to the mass-, low-cost and middle-scale housing markets.