Robinsons Land plans P5-B loan to fund projects

Robinsons Land Corp., the property arm of the Gokongwei-owned (RLC) holding firm JG Summit Holdings Inc., plans to borrow P5 billion to fund on-going and new projects.

RLC president and chief operating officer Frederick Go said the company is looking at various options to raise funds for its capital expenditures this year and next year. "It could be pure debt but everything is still under study. With this (referring to new borrowings), we will have enough funds for expansion."

However, the company, in an earlier disclosure to the Philippine Stock Exchange, said it was considering issuing fixed-rate corporate notes.

RLC is spending P15 billion this year and next year to build new malls in Dumaguete, Bulacan, Paco in Manila, Tagaytay and Davao as well to refurbish existing malls in Ermita, Manila and Bacolod.

About 30 percent of the budget will go to the establishment of new office buildings catering to business process outsourcing firms. The balance will be spent for the construction of new housing projects and acquisition of new properties.

Robinsons Homes Inc. senior vice-president and general manager Marilu Alferez said the company is targeting 10 new projects this year in the key areas of Luzon and Mindanao. It has set aside P1 billion this year for its capital expenditures.

Robinsons Homes is the housing and land development division of RLC.

Alferez said two projects will rise in Laoag and in Davao. Other sites include Cebu, Iloilo, Tagaytay, Cagayan De Oro and Pampanga.

The Tagaytay project, dubbed Wellington Courtyard, is in joint venture with Omico Corp., a listed mining and property firm controlled by businessman Tommy Tia. It involves the development of five residential condominium buildings.

Alferez said a total of 176 units will be constructed in a sprawling one-hectare property owned by Omico. Units would cost between P2 million and P4 million.

Robinsons Homes will soon launch its first project in Ilocos Norte, through a joint venture agreement with the Ablan family. The project involves the development of a residential community and a commercial strip in a five-hectare property in Laoag City. It would be its first major project in Northern Luzon.

Its other project in Ilocos is a 15-hectare mid-rise cost residential development in partnership with the Singsons.

Alferez said the company will open the second phase of Forest Parkhomes, which is envisioned to become another masterpiece in Angeles City, Pampanga.