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Vista Land Homebuilder Bonds OK’d

Posted on September 28, 2012 08:13:26 PM [ BusinessWorld Online ]

THE P2.5-BILLION Homebuilder Bonds of Vista Land & Lifescapes, Inc. has obtained regulatory approval in a bid to raise funds for corporate purposes and attract more buyers of the company’s properties.

The real estate firm’s registration statement was approved by the Securities and Exchange Commission (SEC) last Sept. 24 and made available late Thursday.

“Yes, it’s already okay,” Gerard M. Lukban, SEC secretary, told BusinessWorld in a text message on Friday when asked whether the company’s bonds have been approved.

Last July 26, Vista Land authorized its management to offer the Homebuilder Bonds at a maximum amount of P2.5 billion, and will be offered to the traditional low- to middle-income market base.

“Through this offer, Vista Land seeks to enable its potential market for affordable and middle-cost housing units to accumulate funds that could sufficiently afford them a quality home built to suit their needs in the near future,” the company’s registration statement read.

“This alternative savings mechanism is primarily targeted to benefit the low to middle-income market segment, which very seldom has access to relatively high-yielding investment products at reasonable risks,” it added.

Vista Land expects to initially raise P468.93 million in net proceeds from the first tranche of P500.40 million due in 2015, which may be further expanded to a maximum of P834 million due in 2017, the document added.

For the first tranche, the bonds will have a 5.00 to 6.75% per annum indicative interest rate and a P180,000 minimum subscription payable through 36 monthly payments of P5,000.

Upon the bonds’ maturity, investors may opt to use the proceeds to purchase a Vista Land property, or secure a cash pay-out.

Investment & Capital Corp. of the Philippines and RCBC Capital Corp. will be serving as underwriters for the transaction.

Vista Land, founded by Senator Manuel B. Villar, Jr., has so far delivered about 200,000 units to buyers since 1977, and claims to have a presence in over 50 cities and municipalities nationwide, its Web site read.

In the first quarter, the company bared plans to develop eight residential condominiums worth P10 billion and 32 residential subdivisions worth P32 billion this year.

In addition, the developer is targeting to hit reservation revenues of P28 billion to P30 billion by the year-end, compared to a 2011 goal of P24 billion incurred from 23 projects, it said last May.

For 2012, Vista Land had programmed a capital expenditure of P15 billion, to be used mostly for Camella Homes, which sells residential units valued at P3.5 million and below.

The real estate firm boosted its January to June net income by 25% to P2.19 billion from P1.74 billion last year, buoyed by revenue growth that reached P8.1 billion versus P6.6 billion last year, a 22% increase.

Costs and expenses for the period, meanwhile, expanded by 21.86% to P6.41 billion from P5.26 billion, year on year.

Vista Land shares rose by 0.63% to P4.78 on Friday from P4.75 at its previous close. -- Franz Jonathan G. de la Fuente

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