By Jenniffer
B. Austria | Posted on Jul. 06, 2013 at 12:01am
[
manilastandardtoday.com ]
Federal Land
Inc., the property development arm of the GT Capital Holdings Inc., said Friday
it signed a P5-billion corporate note facility agreement with a syndicate of
institutional lenders.
GT Capital,
owned by tycoon George Ty, said in a disclosure to the stock exchange it raised
the issue size from the original P3 billion because of strong demand from
institutional investors.
Lenders were
composed of banks, insurance companies, pension funds and trust institutions.
GT Capital
plans to use the proceeds from the issue, which consists of seven- and 10-year
fixed rate notes, for ongoing projects, working capital and general corporate
purposes.
First Metro
Investment Corp. was the sole arranger and book runner of the notes issuance.
“The timing
of this debt raising is excellent, as it enables Federal Land to capitalize on
the robust real estate demand fueled by the strong economic wave currently
enjoyed by our country,” Federal Land president Alfred Ty said.
“Against the
backdrop of strong economy, we have maintained a steady surge in market demand
for our high end, middle end and affordable projects, from the western part of
Metro Manila to the eastern section. The fundamentals of our company remain
sound and we are committed to maintain this course,” Ty said.
Federal Land
earlier said it earmarked P12 billion in capital expenditures for this year to
launch new residential, office and commercial development projects.
One of the
projects to be launched this year is the Blue Bay Walk, a retail development
along Roxas Boulevard in Pasay City that will offer 30,000 square meters of
leasable area.
The first
phase of the project is scheduled for completion before the end of the year.
The company
plans to introduce another 15-story office building within the 37-hectare
property in Pasay City. The office building will offer 25,000 square meters of
leasable area that will target business process outsourcing companies.
The property
company is also studying possibility of putting up retail and office
developments within a 10-hectare property in Fort Bonifacio Taguig City.
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