Sta. Lucia to raise P6 B from follow-on offer

MANILA, Philippines - Property developer Sta. Lucia Land Inc. (SLI) is aggressively pursuing an expansion program amid the ongoing real estate boom.

SLI said it plans to raise P6 billion for funding projects while entering joint venture deals for idle lands nationwide.

In a disclosure, SLI said its board of directors approved the plan to sell as much as three billion shares through a follow-on offering and raise P6 billion through a direct loan or an offering of onshore or offshore US dollar-denominated bonds.

The board also allowed employees and consultants to buy 100 million shares through a stock option plan.

“The proceeds of the follow-on offering and issuance of bonds will be used for the expansion of the business of SLI,” the company said.

SLI was also granted the authority to enter into several partnership agreements that will increase available areas for development.

Specifically, SLI can seek partners for the development of a parcel of land located in Davao City owned by Greensphere Realty & Development Corp; expansion of SLI’s Palo Alto project in Tanay, Rizal; expansion of the Rizal Techno Park involving 10,100 square meters (sqm) parcel of land; expansion of the Greenwoods Executive Village in Pasig involving a parcel of land owned by St. Botolph Development Corp. with an area of 5,558 sqm; and expansion of the Cainta Greenland in Rizal province involving a 5,019 sqm lot of Sta. Lucia Realty and Development Inc.

To beef up its landbank, SLI can now acquire seven parcels of land located in Taytay, Rizal with an aggregate area of 4,865 sqm and a 7,895-sqm parcel of land in Lipa, Batangas.

In 2011, SLI announced a five-year, P11-billion investment for new housing and commercial projects to take advantage of robust market demand. Its projects include five residential towers and a three-level podium near the Sta. Lucia East Grand Mall in Cainta, Rizal.