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Vista Land starts Homebuilder Bond sale

Posted on October 15, 2012 10:19:09 PM [ BusinessWorld Online ]

PROPERTY DEVELOPER Vista Land & Lifescapes, Inc. yesterday started selling the first tranche of its P2.5-billion Homebuilder Bonds after obtaining the approval of the corporate regulator on Friday last week, an official said.

“The offer period for the Homebuilder bonds is on Oct. 15-Nov. 8,” said Ricardo B. Tan, the company’s chief financial officer, said in a text message yesterday.

This comes as the Securities and Exchange Commission last Friday approved the company’s application to sell up to P2.5 billion worth of Homebuilder Bonds.

Mr. Tan early this month said the bonds are targeted at the company’s traditional low- to middle-income market base in a bid to raise funds for corporate purposes and attract more buyers for the company’s properties.

For its first tranche, Mr. Tan said the company will be offering P500.4 million. The bonds will have 5-6.75% annual interest rate and P180,000 minimum subscription payable through 36 monthly payments of P5,000, the company said last month.

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

Mr. Tan said the company has not set a timetable for the other tranches.

Investment & Capital Corp. of the Philippines and RCBC Capital Corp. will serve as underwriters for the bond offering.

In the first quarter, the company said it planned to develop by yearend eight residential condominiums worth a total of P10 billion and 32 residential subdivisions worth P32 billion.

The developer targets P28-30 billion in reservation revenues by yearend, compared to a 2011 goal of P24 billion from 23 projects, it said last May.

For 2012, Vista Land had programmed 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 grew its net income by 25.86% to P2.19 billion in the first half from P1.74 billion in the same six months last year, buoyed by revenues that rose 22.7% to P8.1 billion from P6.6 billion in the same periods.

Vista Land operates through five distinct business units, namely:

Brittany, Crown Asia, Camella Homes, Communities Philippines, and Vista Residences, Inc. whose projects range from lost-cost housing to luxury houses in master-planned communities.

Shares of the company shed seven centavos or 1.44% to P4.80 apiece yesterday P4.87 apiece on Friday. -- CHCV            

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