By Jenniffer B. Austria | Posted on September 20, 2013 at 12:02am | manilastandardtoday.com
Filinvest Land Inc., the real estate arm of the Gotianun family, is spending P27.3 billion over the next 15 months to expand its residential, office and retail projects.
Filinvest Land said in a filing with the Securities and Exchange Commission it would spend P6.9 billion in the fourth quarter of 2013 and P20.37 billion for the whole of 2014.
The company said at least P10 billion of the P27.3-billion capital expenditures would finance the development of high-rise and mid-rise condominiums, while P7.69 billion would fund retail and commercial developments.
Another P5.45 billion was earmarked for office development and the remaining P2.3 billion was programmed for horizontal housing projects.
Funding for the P27.3- billion capital spending would partially come from the proposed issuance of P7 billion worth of fixed-rate peso retail bonds.
The bonds are composed of seven-year bonds due 2020 or 10-year bonds due 2023.
Filinvest Land hired BPI Capital Corp., BDO Capital & Investment Corp. and First Metro Investment Corp. as joint lead underwriters.
The property company is implementing plans to double its leasing portfolio to 317,171 square meters from 162,483 sq.m. of gross leasable space as of end-2012.
This includes construction of seven new office buildings worth P9 billion. The office towers, which will cater to business process outsourcing companies, are located in Alabang and Cebu. They will be on stream by end of 2015.
Filinvest Land is putting up three new shopping malls and expanding one existing outlet that will nearly double the current gross lease area to 268,000 sq.m. from 135,000 sq.m.
The new malls are located in Cebu, Tagaytay and Cavite. The company is expanding the existing Festival Mall in Alabang.
Festival Mall Tagaytay is a 32,000-square meter retail development, costing P2.5 billion, while Princeton mall in Cavite is a 35,000-square meter shopping destination worth P1 billion.
Festival Mall Cebu is a 7.4-hectare development that costs P3.1 billion, while the expansion of Festival Mall in Alabang involves the construction of an additional 10,000 square meters of leasable space worth P5 billion.
The new malls are expected to be operational by 2016.
The property company is rapidly expanding its portfolio of mid-rise buildings, which are the best housing alternative for the urban Filipino family.
Filinvest Land is currently constructing 11 MRBs to add to the 41 buildings it has already completed.