Published : Wednesday, November 09, 2011 00:00
Written by : KRISTA ANGELA M. MONTEALEGRE
Global-Estate Resources Inc. (GERI) said it is looking to raise funds for the development of its tourism estate projects.
On the sidelines of the company’s special stockholders’ meeting, Alain Sebastian, GERI assistant vice president, said the company obtained the approval of its shareholders to double its authorized capital stock to P20 billion, which would facilitate future capital-raising exercise for the development of integrated tourism estates in Boracay, Tagaytay and Batangas.
GERI has yet to set a time table for the fund-raising exercise, either in the form of debt or equity financing, but the capital hike ensures the company will have enough shares available for issue should it decide to raise funds through a share sale.
“All we have now is really the facility, but it’s a capital investment decision meaning it’s largely market-driven,” Sebastian said.
GERI is developing the P15-billion Boracay Newcoast in Boracay and the P5-billion Twin Lakes near Tagaytay. The firm is set to roll out next year another tourism estate project located on a 200-hectare property in Nasugbu, Batangas, Sebastian said.
In the third quarter, GERI reported a net income of P62.26 million, a reversal of the P496.66 million net loss recorded in the same period last year on lower costs following the retirement of bonds and loans.
This brought GERI’s net profit in the first nine months of the year to P160.15 million from a net loss of P513.92 million in 2010.
Revenues for the January to September period jumped 12 percent year-on-year to P662.8 million from P594.07 million on higher income from rentals and golf course maintenance contracts as well as improved share from the equity in net earnings of associates and other income.
GERI’s shares rose 5.34 percent to close at P2.17 apiece on Tuesday.
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