FELI chairman Robert John Sobrepeña said the company, which is now debt-free after wiping out all its bank debts, is intent on pursuing the development of several large-scale projects this year to generate more revenues.
Sobrepeña said the company has lined up six to seven projects this year which include the development of Manila Southwoods’s Phase 5; the Twin Lakes, a leisure and recreational complex on a 900-hectare property in Laurel, Batangas; the Nasugbu Harbor Town in Batangas; Boracay Villas; Camp John Hay cabins; and the Sta. Barbara Residential and Golf Estates. Of the programmed capital budget, P500 million will be channeled to Nasugbu Harbor Town.
Most of these projects are in various stages of development while the others have yet to start construction.
Other projects of the company include Cathedral Heights in Quezon City, Eight Sto. Domingo Place (a residential condominium building in Quezon City), Parco Bello (a residential development with golf course in Muntinlupa), Renaissance 5000 Center and New Port Hills.
"We are poised for robust growth, stability in line with efforts to bring the company back to its rightful place. We used to be the leader in the industry. It took great lengths to settle our debts. We have learned our lessons well," Sobrepeña said.
FELI is expected to generate cash flow from these projects within the year or next year.
Sobrepeña said the company plans to use shares or equity to raise funds from foreign investors.
FELI shareholders approved yesterday a plan to raise its authorized capital stock to P5 billion from only P2.8 billion and the subscription by Fil-Estate Management Inc. of up to P550 million as payment for advances to FELI.
The company 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.
Managed by Peter Churchhouse, 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.
Negotiations are ongoing for an additional $5 million convertible bond or equity-linked issue.
FELI has a total landbank of 3,050 hectares, which is sufficient for future development for 10 years. This landbank is seen to generate P120 billion in revenues for the company over the next 10 years.