By Jenniffer B. Austria | Apr. 15, 2014 at 12:01am [ manilastandardtoday.com ]
Vista Land & Lifescapes Inc. of the Villar Group will spend P7 billion to develop commercial projects of low-end housing unit Communities Philippines Inc. in Davao, Iloilo and Cagayan de Oro cities.
Vista Land said in a registration statement filed with the Securities and Exchange Commission for its P5 billion worth of bonds it earmarked P3 billion for projects in Iloilo, P2 billion for Davao and another P2 billion for Cagayan de Oro.
Vista Land said it would use the proceeds from the planned P5-billion bond offering to partially finance the commercial developments of Communities Philippines and its subsidiaries.
Vista Land earlier said it would issue P3 billion in five and seven-year fixed rate retail bonds with an overallotment of up to P2 billion.
The company set the offering period for the bonds on April 28 to May 2 and plans to list them with Philippine Dealing & Exchange Corp. The bond listing is tentatively set on May 9.
The board of Vista Land last week agreed to make an offer to redeem ahead of maturity $150.34 million worth of debt notes due in 2015.
The board also approved the issuance of new notes by wholly-owned unit Vista Land International Inc., subject to terms to be approved by the management and market conditions.
Vista Land is one of the leading property developers in the low-cost and affordable housing market segments. It has built more than 250,000 homes located in 34 provinces and 73 cities and municipalities throughout the Philippines.
It caters to practically all income segments of the real estate market through its four brands—Camella, Crown Asia, Brittany and condominium developer Vista Residences.
Vista Land plans to launch P28 billion worth of residential projects this year, mostly for the low-income and affordable segments of the market as it expects demand for low and affordable housing projects to remain robust in the next few years.
It has increased its capital spending this year to P21 billion, up 22 percent from P17.2 billion in 2013, mainly for land acquisition and development and construction.
Vista Land in 2013 posted a record net income of P5.1 billion, up 15 percent a year ago, while revenues from real estate also reached a record of P20 billion, up 23 percent from P16.3 billion in 2012.
Reservation sales in 2013 grew 15 percent to P46.1 billion.