Fil-Estate to sell assets to raise P6 billion for projects

MANILA, Philippines - Sobrepeña-controlled Fil-Estate Land Inc. (FELI) is embarking on an asset divestment program to raise as much as P6 billion to bankroll the completion of certain residential and mixed-use projects.

At the company’s stockholders’ meeting yesterday, FELI chairman Robert John Sobrepeña said the firm is hoping to generate P17 billion in sales over the next two or three years from its current inventory of projects.

He said the company is in talks with local and foreign groups for the possible sale of lot pads within the 126-hectare Fairways and Bluewater in Boracay. Negotiations are also ongoing for the sale of its 56-hectare Park Lane along Daang Hari in Tagaytay.

FELI is likewise looking to secure between P700 million and P800 million in loans from several banks including Banco De Oro and Bank of Commerce to pursue its affordable housing projects like the 8 Sto. Domingo Tower and the Steps in 8 Sto. Domingo, Quezon City and Capitol Plaza in front of Quezon City Hall.

The group has redesigned Capitol Plaza to position it as a condotel to take advantage of the bustling QC district. 

Sobrepeña said the company will continue to focus on developing projects with recurring income. Among these are the Southwoods Ecocentrum BPO and commercial complex and the North Triangle BPO and mixed-use development.

He said FELI’s primary market will remain focused on the socialized, low-cost and affordable segments of the housing market as demand for these segments continues to be strong and unmet. The company is building up inventories for the 48-hectare Southwestern Development (next to Southwoods Phase 1 and 2) in Carmona, Cavite; the Naic residential development, also in Cavite; and Pioneer Central Park Lane in Mandaluyong City.

FELI will also focus on the development of strong performing projects like the Sta. Barbara Heights in Iloilo; Riverina in San Pablo, Laguna; Holiday Homes in Gen. Trias, Cavite; and the Scout Hills Forest Cabin units in Camp John Hay, Baguio City.

The company is eyeing a net income of between P35 million and P50 million for its next fiscal year ending September 2011, a turnaround from the P133.95 million loss incurred the previous fiscal year.

FELI posted net earnings of P2.63 million in the nine months ending June this year, a reversal of the P73.12-million loss incurred the same period a year ago. This was a result of the reduction of costs and expenses despite a reduction in revenue.

Revenues amounted to P392.9 million from October 2009 to June 2010, down 16.7 percent from P471.49 million the previous period.

As of end-June this year, FELI had total assets of P14.88 billion. Cash and cash equivalents decreased 58 percent to P81 million as funds were utilized for operations.