By Zinnia B. Dela Peña (The Philippine Star) Updated November 25, 2009 12:00 AM
MANILA, Philippines - Fil-Estate Land Inc. (FELI) is setting up a P2-billion special purpose vehicle (SPV) that will become the group’s development company as it aims to make a fresh start.
On the sidelines of the company’s annual stockholders meeting Monday, FELI chairman Robert John Sobrepena said the company is in talks with both foreign and local entities that have expressed interest to invest in the soon-to-be-established SPV.
Sobrepena said the SPV will hold the shares of a new company that will be formed hopefully within the first quarter of 2010. Under the plan, FELI will be contributing properties to the SPV.
The move is part of the group’s strategy to rebuild its old glory as a premier real estate developer in the country.
“We have repaired the damage and have finished unfinished projects. We’re definitely moving forward,” Sobrepena said.
He said the company has lined up new projects to ensure a steady stream of revenues. Among these include a condotel in Camp John Hay and a business process outsourcing (BPO) campus in Southwoods Eccocentrum.
After successfully trimming debt and operating costs, FELI is now focused on accelerating completion of its projects and generating sales to boost its cash flow.
Bank debts and payables to suppliers, contractors and other creditors were reduced through asset swap arrangements utilizing its real estate and golf and resort shares inventory.
FELI’s strategy is to forge alliances with other real estate developers or entities to fund its large-scale projects.
The company is aiming to raise as much as P1.5 billion from the sale of assets to complete some real estate projects, pay down debt and fund its shift to socialized or affordable housing.
FELI has a total landbank of 3,050 hectares, which is sufficient for future development for 10 years. This landbank is seen to generate P120 billion in revenues for the company over the next 10 years.
Of the total landbank, over 1,000 hectares are wholly-owned and 2,940 are joint venture properties.
FELI is primarily engaged in horizontal development of residential subdivision lots, integrated residential, golf and other leisure-related properties and vertical development of mixed use communities.
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