Cathay Land to raise funds via public offering

Aggressive real estate developer Cathay Land Inc. (CLI) is planning to do an initial public offering (IPO) in the next five years to raise additional funds for its various residential and commercial development projects.

In a press briefing, CLI president Jeffrey Ng said that Cathay will be spending P5.25 billion alone to develop its 250-hectare prime residential development project in Sta. Rosa, Laguna known as South Forbes Golf City.

CLI is also planning to put up a cyber park within the South Forbes development, while it is also planning to redevelop its unsuccessful Cavite Light Industrial Park (CLIP) in Carmona, Cavite.

CLI, Ng said, plans to offer primary and secondary shares representing 20 percent to 30 percent of CLI’s outstanding shares.

According to Ng, CLI views Sta. Rosa as the next growth area with a future university belt area and a master planned residential and commercial area.

Sta. Rosa, in fact, Ng pointed out, is already known as the "Detroit" and "Silicon Valley" of Luzon with several automotive and electronic firms located in the area.

A substantial expatriate community is also located in the area, Ng said, providing ample opportunity for upscale housing and leisure developments.

CLI’s South Forbes project, Ng explained, is an upscale residential, commercial and leisure development project that targets local, foreign and overseas Filipinos.

South Forbes, Ng said, is divided into several development projects that include the ongoing South Forbes Villas and Bali Mansions of which 70 percent to 80 percent have already been sold; the still to be developed P500-million South Forbes Golf & Leisure Club; the P600-million Golf View Terraces; the P500 million condominium development Esplanade and the P500-million upscale residential development Tokyo Mansions.

The undeveloped projects alone, Ng said, would involve an outlay of P3.1 billion in the next two years.

However, because of favorable response to its projects, Ng projects that the various South Forbes development would be completely sold by next year even though completion of the entire city will be up to 2020.

A city center and commercial area are also envisioned while a 30-hectare cyber park is also on the drawing board.

Ng said CLI will apply for economic zone status from the Philippine Export Zone Authority (PEZA) for its cyber park development project which will be started two years from now or in 2007.