In a disclosure report to securities regulators, FELI said it was entering into the five-year credit facility together with subsidiary Fil-Estate Urban Development Corp.
FELI did not identify the lender.
FELI has earmarked P1.5 billion for its real estate development projects in the next 12 to 18 months as it seeks to regain its status as one of the leading property firms in the country after successfully trimming its debt to a more manageable level.
Following the reduction of its debt to just P25 million from a little over P100 million the previous fiscal year, FELI is set to launch eight projects that are expected to provide a stable recurring income for the group.
FELI expects to fully settle its debt by the end of the year through revenues generated from its projects.
Among the company’s projects are the phase V expansion of Manila Southwoods, Twin Lakes (a mixed-use project in Laurel Batangas), Sto.Domingo Place (a residential condominium building in Quezon City), Mulligans Golf Hotel in Boracay, ParcoBello (a residential development with golf course in Muntinlupa), and Festival Villas in Iloilo.
FELI is in talks with several groups of foreign and local investors for possible joint development of planned real estate development projects.
The company earlier signed an agreement with the Chung family, owner of the MC Depot, to build nine "condotels" in Boracay right beside the company’s Fairways property. The project will be a 60-40 joint venture in favor of the Fil-Estate Group.
FELI has a total landbank of 3,050 hectares, which is sufficient for future development for 10 years. This landbank is expected to generate P120 billion in revenues for the company over the next 10 years.
Its properties are scattered all throughout Metro Manila and the Calabarzon.
Of the total landbank, 2,000 hectares are for joint venture developments and the balance of 1,050 valued at P2.5 billion is solely owned by the company.
Fil-Estate continues to streamline operations, reduce costs and develop recurring revenues to allow it to take advantage of the promising opportunities in the real estate sector.