City & Land eyes bond market to raise P500-M

Listed property firm City & Land Developers Inc. (CLDI) will tap the bond market to raise P500 million for the funding requirements of its ongoing condominium project in Makati, a company official informed the Philippine Stock Exchange.

CLDI senior vice president Rufina Buensuceso said the company’s board of directors has approved the issuance of P500 million worth of short-term commmercial papers (STCPs) which will be subsequently filed with the Securities and Exchange Commission.

The additional borrowings would be channeled to finance the construction and development of the company’s major project, the Cityland Makati Executive Tower, a 32-story condominium building suited for commercial, office or residential use. It will rise along Dela Rosa St. in Makati, just a street corner away from the South Superhighway and Gil Puyat Ave.

The project, estimated to cost around P500 million, has been partly financed by the proceeds of CLDI’s initial public offering (IPO) in late 1999 but the project’s timetable has been periodically readjusted due to the then soft market condition in real estate.

The project cost is exclusive of the cost of the land, which is already part of the company’s landbank before the IPO. Estimated date of completion is December 2006.

CLDI is a subsidiary of Cityland Development Corp., a known developer of several high-rise office and residential condominium in Makati, Mandaluyong and Pasig, as well as residential subdivisions and farmlots in Bulacan and Cavite.

In 1999, the company undertook an IPO involving the sale of 45.5 million of its common shares priced at P3.95 each. However, the net proceeds from the IPO were temporarily placed in the money market due to the adverse business conditions, particularly for real estate, prevailing at the time.