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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