Boulevard Holdings Inc. (BHI) is raising its capital stock by P600 million through a share-for-property swap in order to acquire new land worth P1.87 billion in Cavite for the construction of its third Friday’s resort.

In a disclosure to the Philippine Stock Exchange, BHI said its authorized capital stock will be increased from P200 million, divided into two billion shares, up to P800 million divided into eight billion common shares with a par value of P0.10 per share.

The proposed P600 million increase will be subscribed and paid in full by stockholder JP Guilds, Inc. by way of assignment of land. The increase of six billion common shares will be issued 50 percent above par or at P0.15 per share for a total of P900 million.

The new shares will be issued in exchange for the assignment of seven parcels of land located at Barangay Sapang, Ternate, Cavite, with an aggregate area of 1.07 million square meters, to be used for the site of the proposed third Friday’s Resort.

The properties were appraised by Cuervo Appraiser, last October to have a value of P1.87 billion. Thus the proposed shares swap arrangement, valued only at P900 million, represents just 48.18 percent of the appraised value while shares of stock that will be acquired by the stockholder will be at a 50 percent premium based on the prevailing market price of P0.10 per share.

BHI is spending a total of P650 million to fully complete its resort chain investments including the expansion of Fridays Hotel in Boracay and its new resort in Puerto Galera.

The firm said earlier that it intends to fund the capex from a combination of asset disposals, internally generated funds, and private placement with foreign private equity.

BHI said it will inject an additional P40 million into its Fridays Hotel unit in Boracay Island from internally generated funds. Fridays Boracay will use the money for the acquisition of additional property in Boracay for its resort expansion.

Another unit of BHI, Fridays Boquete Island, continues to focus on the on-going construction of its 85 room Boutique Hotel in the lagoons of Puerto Galera. Expected soft opening is scheduled within the first quarter of 2010.