Posted on October 15, 2012 10:19:09 PM
[ BusinessWorld Online ]
PROPERTY DEVELOPER Vista Land &
Lifescapes, Inc. yesterday started selling the first tranche of its
P2.5-billion Homebuilder Bonds after obtaining the approval of the corporate
regulator on Friday last week, an official said.
“The offer period for the Homebuilder
bonds is on Oct. 15-Nov. 8,” said Ricardo B. Tan, the company’s chief financial
officer, said in a text message yesterday.
This comes as the Securities and
Exchange Commission last Friday approved the company’s application to sell up
to P2.5 billion worth of Homebuilder Bonds.
Mr. Tan early this month said the
bonds are targeted at the company’s traditional low- to middle-income market
base in a bid to raise funds for corporate purposes and attract more buyers for
the company’s properties.
FIRST TRANCHE
For its first tranche, Mr. Tan said
the company will be offering P500.4 million. The bonds will have 5-6.75% annual
interest rate and P180,000 minimum subscription payable through 36 monthly
payments of P5,000, the company said last month.
Upon the bonds’ maturity, investors
may to use the proceeds to purchase a Vista Land property, or as cash pay-out,
it added.
Mr. Tan said the company has not set a
timetable for the other tranches.
Investment & Capital Corp. of the
Philippines and RCBC Capital Corp. will serve as underwriters for the bond
offering.
PLANS
In the first quarter, the company said
it planned to develop by yearend eight residential condominiums worth a total
of P10 billion and 32 residential subdivisions worth P32 billion.
TARGET
The developer targets P28-30 billion
in reservation revenues by yearend, compared to a 2011 goal of P24 billion from
23 projects, it said last May.
For 2012, Vista Land had programmed
capital expenditure of P15 billion, to be used mostly for Camella Homes, which
sells residential units valued at P3.5 million and below.
The real estate firm grew its net
income by 25.86% to P2.19 billion in the first half from P1.74 billion in the
same six months last year, buoyed by revenues that rose 22.7% to P8.1 billion
from P6.6 billion in the same periods.
Vista Land operates through five
distinct business units, namely:
Brittany, Crown Asia, Camella Homes,
Communities Philippines, and Vista Residences, Inc. whose projects range from
lost-cost housing to luxury houses in master-planned communities.
Shares of the company shed seven
centavos or 1.44% to P4.80 apiece yesterday P4.87 apiece on Friday. -- CHCV
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