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DMCI Homes signs P5-B fixed rate notes facility agreement

(The Philippine Star) Updated January 26, 2011 12:00 AM
MANILA, Philippines - The middle-income housing sector recently received a significant boost through top-performing DMCI Project Developers, Inc., operating under the brand name of DMCI Homes, signing a P5-billion fixed-rate notes facility agreement at the Mandarin Hotel last Jan. 14, 2011.
The corporate notes facility was the initial foray of DMCI Homes in the capital markets, boding well for a company that has steadily gained reputation as a leading real estate player that serves a young family market.
The signing ceremony was attended by top executives of DMCI Homes and BDO Capital & Investment Corp., who acted as lead arranger and sole bookrunner for the corporate notes. The initial noteholders consist of the country’s top financial institutions, including: Banco De Oro Unibank, Inc., China Banking Corp., Bank of the Philippine Islands, BDO Leasing and Finance Inc., Land Bank of the Philippines, Security Bank Corp., and United Coconut Planters Bank.
The DMCI Group, which has deep, solid roots in the construction industry, has parlayed its core competency into community development ventures such as mid-and high-rise housing projects through the brand DMCI Homes. Distinguishing itself as triple A builder-developer, DMCI Homes offers condominium units with bigger spaces, resort-style amenities, quality finishes, efficient property management, and financing options for unit buyers.
BDO president and CEO Nestor Tan said the fact that oversubcription reached P11 billion was a testament to the strength of the company. In response, Alfredo Austria, president of DMCI Project Developers, Inc. expressed his group’s gratitude for the support of the banks and promised that end-users, particularly young families who dream of owning homes in strategic locations within Metro Manila, will enjoy the benefits of the P5-billion capital markets deal.
The fixed-rate notes facility ensures that DMCI Project Developers, Inc. will not be subject to loan re-pricing every year.
According to Joseph Ramil Lombos, DMCI Homes director for finance and operations, the firm issued notes to finance its expansion – acquire more land and invest on engineering technologies – to offer better quality homes that are affordable.
“It’s the debut of DMCI Homes into the capital markets, of raising capital from outside. They are that big now, they are that strong,” said Eduardo Francisco, president of BDO Capital & Investment Corp. BDO Capital has early on identified the DMCI Group as having good growth projects and various core competencies, ‘Sso we try to help finance them in construction, homes, water, coal and other power, because we know that when they go inside there, pinag-aralan, and we believe in them.”
The proceeds of the P5-billion corporate notes will be used up hopefully within the year, according to Lombos.
“DMCI Homes is the country’s premier triple A builder-developer that brings serviced, themed communities within reach of urban families who once had limited residential options, but still aspire to achieve a comfortable, enriching quality of life proximate to their place of interest.

SEC okays Fil-Estate Land's capital hike to P10B

By Zinnia B. Dela Peña (The Philippine Star) Updated January 26, 2011 12:00 AM
MANILA, Philippines - Fil-Estate Land Inc. (FELI), now controlled by Alliance Global Group Inc. (AGI) of real estate tycoon Andrew Tan, has obtained the approval of Securities and Exchange Commission to raise its authorized capital stock from P5 billion to P10 billion.
In a disclosure to the Philippine Stock Exchange, FELI said the new capitalization now consists of 10 billion common shares with a par value of P1.
Publicly-listed holding firm AGI subscribed and paid the entire P5 billion capital hike equivalent to nearly 60 percent of FELI.
With the subscription, AGI’s Tan is now the chairman and president of FELI which will be renamed Global Estate Resorts Inc.
The group of businessman Robert John Sobrepena retained a fifth of FELI which used to be a premier real estate developer until the 1997 currency crisis gripped Asia.
AGI’s purchase of a majority stake in FELI is expected to boost the latter’s bid to regain its strong presence in the real estate industry and allow it to pursue projects that had been hampered by liquidity problems.
The deal will allow AGI to develop more than 1,000 hectares of tourism-oriented communities in the country’s prime tourist spots which include Tagaytay and Nasugbu, Batangas.
It will also pursue the Newcoast Station project which will serve as a catalyst for the growth of the Boracay tourism industry.
AGI is an active player in a wide range of industries from tourism and real estate development to food and beverage, quick-service restaurants and hotels and resorts development. Its main units include Travellers International Hotel Group, Megaworld Corp., Emperador Distillers Inc. and the McDonalds franchise.

Megaworld, Fil-Estate Land tie up in Tagaytay

[ ] January 25, 2011
Fil-Estate Land Inc. and Megaworld Corp. are jointly pursuing the development of Twin Lakes Resort Estates in Tagaytay City into a world-class tourism-oriented community.
The two property developers said in separate disclosures to the Philippine Stock Exchange Monday that the development covered over 1,149 hectares of land in Metro Tagaytay.
Fil-Estate has started a master plan for Twin Lakes, which offers resort estates overlooking panoramic views of its own lake as well as Taal Lake.
“The entire community will be developed by phases and will become the country’s most integrated tourism estate,” said Fil-Estate vice president Sylvia Hondrade.
The project is to be developed in phases.
She said the initial phase of the development would include a luxury hotel, residential villas and condominiums, a shopping village, botanical garden, sports and country club and plantation estates.
She estimated the project cost of the initial phase to exceed P5 billion.
“Twin Lakes stretches from Tagaytay’s mountain peak down to its lakeside. The project’s vast land size opens up a lot of possibilities for development,” said Hondrade.
Succeeding phases will offer a golf course, international hotels, boarding schools and a retirement village complete with wellness and medical amenities.
“We want to take advantage of the cool weather in Tagaytay. Our ultimate goal is to transform these resort estates into prime destinations for medical and educational tourism over time,” said Hondrade.
The two companies had planned the joint venture as early as two years ago but the global financial crisis deferred the project.
Fil-Estate and Megaworld had also planned to team up on projects in Batangas, Tagaytay, Daang Hari and Iloilo, including Twin Lakes and Sta. Barbara in Iloilo, a mixed-use project near a newly-opened airport there.
The two developers had put in P2 billion worth of assets in Taal Ridge Corp., the joint venture for the Twin Lakes project.
Fil-Estate shares lost P0.10 to close at P1.97, while Megaworld ended at P2.03, down P0.03. Elaine Ramos Alanguilan

Trade plans P2.5m ceiling for low-cost dwellings

by Julito G. Rada
[ ] January 24, 2011
THE government is considering lowering the price ceiling on low-cost mass housing to P2.5 million instead of P2 million from P3 million now, a source said over the weekend.
Developers had earlier opposed the Board of Investments’ proposal to lower the price ceiling to P2 million, saying that would shrink their market. They proposed maintaining the maximum price at P3 million.
It wasn’t clear how lowering the price ceiling would shrink their market, since the price would be more affordable.
“The Trade Secretary [Gregory Domingo] is studying this idea of maintaining the price cap at P3 million, but it probably won’t go that way,” the source said.
“Maybe [the price cap will be lowered to] P2.5 million.”
The source said the Board of Investments was also considering exempting mass housing from the value-added tax.
“The purpose of the exemption is to help the people who may avail [themselves] of these projects,” the source said.
“So there is a need to thoroughly study these things.”
Trade Undersecretary Cristino Panlilio had earlier said the main purpose of reducing the price ceiling to P2 million from P3 million was “to help those living [and working] within the urban areas.” He cited a recent study showing that a couple earning P50,000 a month could not afford to buy a house costing more than P2 million.
“That is the [Board of Investments’] calculation, so the only way to make these low-cost mass housing affordable is to reduce the price ceiling to P2 million,” he said.
Still, developers last week insisted on retaining the P3-million price ceiling on low-cost mass housing in the Board of Investments’ 2011 Investment Priorities Plan, saying the industry had a high multiplier effect on the economy.
The Subdivision and Housing Developers Association Inc. said the real estate industry was helping to boost the economy because it was creating more demand for steel, cement and wood products.
“All these economic activities generate value-added taxes, which will decrease in proportion to the slowdown in housing production,” the group said. It said the government’s tax incentives were motivating developers to produce more mass housing, resulting in creation of more jobs in the construction industry.
Mass housing is one of the preferred activities retained in the list of projects under the draft of the investment board’s Investment Priorities Plan this year.
The others are agriculture, agribusiness, fisheries, the creative industries, shipbuilding, energy, infrastructure, research and development, green projects, tourism and strategic projects.

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