Wednesday, June 03, 2009 [ manilatimes.net ]
By Chino S. Leyco, Reporter
Cityland Development Corp. said it plans to raise fresh funds through the sale of new shares to pay off debts and finance its capital expenditures.
Documents from the Securities and Exchange Commission (SEC) showed that the condominium developer said it would increase its authorized capital stock from P1.9 billion to P3 billion to allow it to sell new shares.
The company said that the proceeds would be used to pay its obligations to investors.
The regulator has also approved City & Land Developers Inc.’s increase its authorized capital from P400 to P700 million. City & Land is a unit of Cityland.
Of the total, about P78.25 million will be set aside to pay out dividends, the documents said.
In the first quarter of the year, Cityland’s earnings dropped by more than a third to P68.33 million on slower sales amid the global economic crisis.
At end-March, the company’s revenues declined to P367.48 million from P498.98 million in the same period last year due to weak real estate sales at P222.63 million from P354.38 million in the same period last year.
To date, the company is already preselling its unfinished four high-rise commercial and residential condominium projects in Makati City, Manila, Mandaluyong and Ortigas.
Cityland said that to complete the whole projects, it will need around P689.66, which would come from the sales of condominium and other property projects, collection of installment receivables, maturing short-term investments or from bank loans.
The firm has credit lines worth P3.28 billion as of the end of the first quarter.
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