By Jerome C. Morales (The Philippine Star) | Updated July 7, 2014 - 12:00am
MANILA, Philippines - Conglomerate GT Capital Holdings Inc. is taking advantage of the property boom as it develops more residential towers in business districts in Pasay and Bonifacio Global City (BGC) through an P8-billion investment.
The investment firm of taipan George S.K. Ty will squeeze more synergy out of its operating units that are poised for further growth this year, an official said.
“The company intends to allocate a portion of the net proceeds of an approximate amount of P6 billion to P8 billion to finance several prime projects of Federal Land Inc. in Metro Manila. This will be infused through an equity investment,” GT Capital said in a filing with the Securities and Exchange Commission.
GT Capital plans to offer P10 billion worth of debt papers, with an oversubscription option of up to P12 billion. Philippine Rating Services Corp. earlier said the proposed P12-billion corporate bonds were rated PRS Aaa, the highest credit score.
Specifically, GT Capital will allocate P4.2 billion to P6.2 billion to partially finance the construction of Park West, Central Park West and Madison Park West projects in Veritown Fort in BGC, the company said.
It also earmarked around P1.778 billion to partially finance the Palm Beach Villas Boracay, and Six Senses 1, 2 and 3 in the Metropolitan Park Project in Pasay City, it added.
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GT Capital said it also spending P390 million for working capital requirement, of which P250 million is for the service charge to the outstanding retail bonds due August 2014 and November 2014.
GT Capital president Carmelo Maria Luza Bautista said Federal Land is beefing up its offerings in the bay area in Pasay with the launch of several residential towers composed of 350-400 units each.
Bautista said the property firm is also increasing its land bank through an acquisition of a lot from another GT Capital unit.
GT Capital allotted P50 billion for its capital expenditures this year, mostly to fund property and power projects.
GT Capital is into banking (Metropolitan Bank & Trust Co.), property (Federal Land), power generation (Global Business Power Corp.), automotive assembly and importation (Toyota Motor Philippines), life insurance (Philippine AXA Life Insurance), non-life insurance (Charter Ping An Corp.) and automotive distribution (Toyota Manila Bay Corp. and Toyota Cubao Inc.).
“Within the group, there are many opportunities to increase the level of synergy,” Bautista said. For instance, not all Toyota car dealers avail of non-life insurance of Charter Ping An and financing from Metrobank.
“You can still get a lot of low-lying fruits to improve your synergy without having to expand your business,” he said.
Bautista said GT Capital is also strengthening its position in the automotive sector ahead of the motorization phase of the Philippine economy.