Filinvest Land plans P5-billion fixed rate bonds for capex funding

MANILA, Philippines - Filinvest Land Inc. (FLI), the property development firm of the Gotianun family, plans to issue P5 billion worth of three-to five-year fixed-rate bonds to fund its capital requirements for this year and next.

In a disclosure to the Philippine Stock Exchange, FLI said the bond issuance will be made through a public offering, scheduled within the fourth quarter of the year.

FLI has set a P5.3-billion capital budget this year, 29 percent higher than the P4.1 billion spent in 2008, due to growing optimism the Philippine real estate industry will continue to grow in spite of a global economic downturn.

This year’s capex will be chanelled to the development of five to six mid-rise buildings, two buildings catering to the business process outsourcing center, the first phase of the P25-billion township located on a reclaimed land in Cebu City, and the company’s first high-rise residential project called The Linear.

FLI is rolling out 29 new projects and phases this year, estimated to generate P7.4 billion in sales across all market segments. It plans to launch more phases in its ongoing mid-rise projects in Ortigas Extension and Marcos Highway in Pasig City, as well as in Davao and Cebu. It will also launch a similar project in Sta. Mesa, Manila.

For its socialized housing projects, the company is readying new projects within Ciudad de Calamba as well as new phases in existing projects in Batangas, Cavite, Tarlac and Pampanga.

The Linear, on the other hand, will comprise two high-rise residential towers offering a total of 1,600 affordable units. Estimated to cost P1.5 billion, the project, which will rise in Makati, will be developed in four stages. The initial phase involves the construction of the first 324 units.

For its Cebu project, FLI has signed an agreement with the Cebu City government to develop 50.6 hectares of the South Road Properties (SRP), a 300-hectare reclaimed property, into a mixed-use complex. The project will be developed in four phases over a 20-year period with FLI contributing the development costs as well as the marketing and management services.

Another 10.6 hectares will be purchased outright by FLI, which will be transformed into commercial or retail spaces, offices and condominiums, and hotels. 

The masterplan for the SRP is now being finalized, with the first project expected to be launched by yearend or early 2010.

For its BPO projects, under construction are two buildings at Northgate Cyberzone – Vector One and Vector Two - which are slated for completion within the year and will add another 35,600 square meters of gross leasable area.

This should increase the group’s office building portfolio to nearly 168,000 square meters.