Posted on 09:14 PM, October 04, 2010 [ BusinessWorld Online ]
LISTED REAL estate firm Cityland Development Corp. is offering P1 billion worth of short-term commercial papers to fund two condominium projects and pay for maturing loans, a document from corporate regulators showed.
A prospectus submitted to the Securities and Exchange Commission (SEC) showed the property outfit would be spending P400 million for its Makati Executive Tower IV (MET IV) and P100 million for the Grand Central Residences (GCR) Tower 1 in Mandaluyong.
A total of P450 million will also be used to settle maturing loans and notes, while P44 million will be spent on interest payments. As of the second quarter this year, the company had a total of P1.73 billion in outstanding loans.
In a disclosure to the Philippine Stock Exchange late last month, Cityland said its board of directors approved last Sept. 24 the filing of the renewal of application for registration of debt papers with corporate regulators.
MET IV and GCR Tower 1 are both commercial and residential condominiums. MET IV, expected to be finished in December 2013, will be a 29-storey building while GCR Tower 1, which is estimated to be completed by March 2015, will be a 40-storey project that will also include office units.
“The project-related costs of P500 million is just part of the total estimated development cost to complete [the projects worth P1.9 billion]. The balance of [P1.4 billion] will be financed through internally generated funds,” the company said.
Aside from the two condominiums, the Cityland and subsidiaries City and Land Developers, Inc. and Cityplans, Inc. are rolling out 12 other projects.
Last month, City and Land secured approval from the SEC to register P200 million worth of short-term commercial papers to finance condominium projects in Ortigas, Pasig and Ermita, Manila.
Short-term commercial papers are promissory notes with a term of less than a year.
Cityland posted an unaudited net income of P266.47 million at the end of June. -- Jo Javan A. Cerda
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