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RLC funnels bulk of funds to land acquisition plans

Posted on March 30, 2011 09:41:57 PM [ BusinessWorld Online ]
GOKONGWEI-LED Robinsons Land Corp. (RLC) will spend a bulk of the proceeds from a planned P13.57-billion share sale to buy more lots for its projects, the property giant said in a disclosure to the local bourse.
Land acquisition will account for 41% or P5.57 billion of the fresh funds expected to be generated from the stocks right offering which kicks off on April 11, Robinsons Land said.
“The offer period shall...end on April 15 at 12 noon, Manila time,” Robinsons Land said.
The rest will be divided among various projects in the pipeline: P2.984 billion for development of commercial properties, P2.978 billion to build new residential projects, P1.49 billion to finance the construction of office buildings and P542 million for hotel development.
“Robinsons Land intends to use the majority of its net proceeds from the offer to finance the acquisition of land and for its mixed-use property developments like malls, condominiums, hotels and offices in Metro Manila and in the region,” the prospectus read.
“For the commercial centers division, [proceeds will be used] to partially finance the construction of one new mall in Metro Manila and four new malls in provincial areas,” Robinsons Land said.
Three prime residential condominium projects under the high-end Robinsons Luxuria brand will be financed by the stock rights offering.
Another three will also be put up under the business district-based Robinsons Residences.
Two new office buildings will rise in the Ortigas business district through the fresh capital, Robinsons Land said.
For the hotels division, new cash will partially finance the construction of five to six new GoHotels over the next two years, the company said.
Under the two-for-one stock rights offering approved by stock holders last month, Robinsons Land will sell 1.36 billion common shares at P10 each from the unissued shares.
This is resulting from the increase in the company’s authorized capital stock of 8.2 billion common shares.
Shareholders that have fully subscribed to new shares under their rights could buy the unsubscribed at the end of the offer period, Robinsons Land said.
Robinsons Land tapped ATR KimEng Capital Partners, Inc. as the lead underwriter for the share sale and receiving agent of payments will be Robinsons Bank.
The company added: “JG Summit Holdings, Inc., the majority shareholder of Robinsons Land, has committed to subscribe, in addition to its own entitlement of rights shares, to any rights shares that will not otherwise be taken up by other eligible shareholders.”
Robinsons Land, the property arm of listed JG Summit Holdings, Inc., is into shopping malls, hotels and office space leasing.
Shares in the property developer -- whose profits surged by almost a quarter to P1.016 billion in the first quarter of its fiscal year that will end in September -- closed four centavos lower at P11.46 each yesterday. -- Neil Jerome C. Morales
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