By Jenniffer B. Austria | Jul. 07,
2014 at 12:01am [ manilastandardtoday.com ]
Federal Land Inc., the real estate
unit of conglomerate GT Capital Holdings Inc. of tycoon George Ty, is spending
up to P8 billion this year to finance the development of two existing township
developments in Bonifacio Global City and Pasay City.
GT Capital said in a filing with the
Securities and Exchange Commission the investments on the projects, as well as
a prepayment of P3.61 billion worth of short-term loans, would be mainly funded
by a planned P12-billion bond sale slated this month.
Under the plan, Federal Land will
spend up to P6.2 billion for two condominium projects in Central Park for
Veritown Fort, namely Central Park West and Madison Park West, and P1.78 billion
for residential projects in Metropolitan Park, namely Palm Beach Villas and Six
Senses.
GT Capital said Federal Land planned
to diversify products further in the middle-income and high-end markets. It
will also develop master-planned communities and launch commercial and retail
projects to increase recurring income.
In 2013, Federal Land recorded P14
billion in reservation sales involving 2,353 units.
The property firm has 33 ongoing
residential projects that are in various stages of completion.
GT Capital is also spending P3.61
billion to pre-pay short term loans from Metropolitan Bank & Trust Co.,
Bank of the Philippine Islands and BDO Unibank Inc.
GT Capital president Carmelo Bautista
said he hopes to secure SEC approval for a planned bond issue to enable it to
issue them this month.
“Once we get the SEC approval, then we
can issue the bonds right away,” Bautista said.
The company hired First Metro
Investments Corp., BDO Capitl and Investments Corp., BPI Capital Corp. and
China Banking Corp. to underwriter the bonds with tenors of five years, seven
years and 10 years.
First Metro executive director Justino
Ocampo said there was strong demand for GT Capital bonds because of increased
liquidity in the market.
Philippine Rating Services Corp. earlier
assigned the highest rating of PRS Aaa
to GT Capital’s proposed P12-billion bond offering.
Obligations rated PRS Aaa are of the
highest quality with minimal credit risk. The obligor’s capacity to meet its
financial commitment on the obligation is considered extremely strong.
Aside from Federal Land, GT Capital’s
current investment portfolio is made up of directly-held interests in
Metrobank; Global Business Power Corp.; Toyota Motor Philippines; AXA Life
Insurance Corp.; Charter Ping An Corp.; and Toyota Manila Bay Corp. and Toyota
Cubao Inc.
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