Cityland to issue P900-million STCPs

MANILA, Philippines - Condominium developer Cityland Development Corp. (CDC) plans to issue P900 million worth of short-term commercial papers (STCPs) to fund its projects, the company said yesterday.

In a disclosure to the Philippine Stock Exchange, CDC said its board approved the renewal of its application with the Securities and Exchange Commission for the planned STCP issue.

CDC, a member of the Cityland Group of Companies, recently raised its capitalization from P1.9 billion to P3 billion.

The company is currently developing The Manila Residences, a 39-storey office, commercial and residential condominium along Taft Avenue. It has completed over 35 condominium projects, holding the record of delivering all its launched projects.

CDC said it has adopted a cautious stance with respect to the launch of new projects amid a challenging business environment. “This will ensure that the development and construction of all its existing projects will be delivered on time or even ahead of its scheduled turnover,” the company said.

CDC added it remains on the lookout for quality projects suited for the middle and working class, situated at convenient locations with affordable and flexible payment terms.

Funding for its projects will come from internally-generated cash and additional borrowings.

As of end-December last year, CDC had total assets of P7.84 billion, up 21.17 percent from P6.47 billion due to an increase in installment contracts receivables and real estate properties for sale and for future development. – Zinnia dela Peña