Posted on September 03, 2013 09:59:15
PM [ BusinessWorld Online ]
CITY & LAND Developers, Inc. has
secured the Securities and Exchange Commission’s (SEC) approval to sell up to
P200 million worth of commercial papers as it prepares for new projects, the
condominium developer said in a disclosure yesterday.
An SEC certificate of permit to offer securities for sale dated Sept. 2
-- signed by the regulator’s acting director Justina F. Callangan and attached
to the disclosure -- said City & Land “securities consisting of P200
million worth of short-term commercial papers have been registered and may now
be sold or offered for sale to the public, subject to full compliance with
provisions of the Securities Regulation Code and its Amended Implementing Rules
and Regulations, Revised Code of Corporate Governance, and other applicable
laws and orders…”
Company officials were not immediately
available for comment on the proceeds of the fund raising.
The issuance of debt papers comes amid
plans by the firm to launch new projects to boost revenues. “With the latest
acquisition of prime lots, the company plans to launch new projects in the
future to increase inventory and consequently generate more sales,” the company
had said in the first-half financial report it submitted to the Philippine
Stock Exchange (PSE) last month.
The company said it recently acquired
“prime lots” along Taft Avenue, Malate and Roxas Boulevard in Manila, as well
as in Veterans Village and along Samar Avenue in Quezon City.
The company’s net income was more than
halved to P64.67 million in the first semester from P149.73 million in the same
six months last year on lower revenues. Revenues plunged 57.21% to P174.54
million from P407.86 million, while expenses fell 60.62% to P93.92 million from
P238.52 million.
“The company’s current projects,
Manila Residences Bocobo and Grand Emerald Tower (Pasig City) were already sold
at 90.85% and 95.22%, respectively as of December 31, 2012, resulting in
limited available units for sale which accounted for the decrease in revenues,”
the company said in its first-half financial report.
“On the cost side, cost of sale and
operating expenses decreased by 68.25% and 44.19% (respectively) as these move
in tandem with sales,” it added.
In September last year, SEC also
allowed City & Land to sell P200 million worth of short-term commercial
papers to bankroll operations, according to the company’s 2012 annual report.
City & Land was incorporated on
June 28, 1988 to acquire and develop land for residential, office, commercial,
institutional and industrial use, according to the company’s profile on PSE’s
Web site.
The company is 49.73% owned by
Cityland Development Corp., another publicly listed company.
Shares of City & Land ended
trading yesterday at P1.80 apiece, unchanged from Monday, while those of its
parent last closed P1.05 each on Monday. -- Cliff Harvey C. Venzon
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