At the same time, FELI said its board approved the subscription by Fil-Estate Management Inc. of up to P550 million as payment for advances to the company.
FELI earlier inked a $12-million loan agreement with Hong Kong-based LIM Asia Alternative Real Estate Fund to accelerate the development of various tourism projects. LIM Asia is a real estate specialist in the Asia-Pacific region.
Under the agreement, LIM Asia will subscribe to approximately 80 million FELI shares at P1 each. FELI will also issue LIM Asia warrants worth P136 million for the loan.
FELI said negotiations are ongoing for an additional $5 million convertible bond or equity-linked issue.
Proceeds from the transaction will be used to fund the ongoing development of Harbourtown in Nasugbu and a golf resort in Laurel both in Batangas; Fairways and Bluewaters in Boracay; and Camp John Hay in Baguio City.
Some of the funds will also go to the construction of a residential and commercial complex in Quezon City.
FELI has set aside P1.5 billion for its real estate development projects in 2007 and 2008 in line with its goal to regain its status as one of the leading property firms in the country.
Among the company’s projects that are expected to provide a stable recurring income for the group 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.
It has a total landbank of 3,050 hectares, which is sufficient for future development and 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 hectares is solely owned by the company.
FELI 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.