FELI mulls P577- M stock rights offer

Fil-Estate Land Inc. (FELI) plans to raise around P577 million through a stock rights offering in January next year.

In a disclosure to the Philippine Stock Exchange, the company said it will offer one share for every 2.5158 shares held as of Jan. 10 at P1 per share.

The offering will run from Jan. 25 to Feb. 8.

FELI earlier signed a $25-million convertible bond facility with LIM Asia Arbitrage Fund, Lim Advisors Ltd. and Hongkong and Shanghai Banking Corp. Trust Department to fund its various real estate development projects.

The bonds, maturing in 2012, represent quasi-debt instruments which can be converted into the company’s shares of stock within the specified conversion period.

The bonds are convertible in new shares of FELI at a conversion rate of P1.50 per share subject to adjustments as prescribed in the facility agreement. A greenshoe option of a maximum of $12.5 million allows FELI to issue additional notes under the same terms and conditions within the year provided that the total notes issued do not exceed $25 million.

FELI has increased its capitalization to P10 billion to facilitate the entry of new investors which will help finance the completion of the company’s large-scale projects.

FELI has set aside P2.5 billion this year for the development of several real estate projects such as the Phase 5 of Manila Southwoods, the Nasugbu Harbor Town in Batangas; Boracay villas, Camp John Hay cabins and the Sta. Barbara Residential and Golf Estates.

Other FELI projects include Cathedral Heights in Quezon City, Eight Sto. Domingo Place (a residential condominium building also in Quezon City), Parco Bello (a residential development with golf course in Muntinlupa), Renaissance 5000 Center and New Port Hillls.

FELI expects to generate cash low from these projects within the year or next year.

The company has a total landbank of 3,050 hectares, 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. 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.