Filinvest prepares P8-b bond offeringDate: June 16, 2015
Filinvest Land Inc., the property unit of the Gotianun family, plans to spend P24 billion in 2015 to fund the construction of residential projects, office buildings and shopping malls.
Filinvest Land said in an information statement filed with the stock exchange around P7.4 billion of the programmed spending would be allocated for residential projects, while P13.2 billion would be used for the construction of office buildings and commercial developments.
The company will allot the balance of P2.9 billion for land banking opportunities.
Filinvest Land said it remained focused on core residential and real estate development, which now included construction of mid-rise and high-rise condominium projects, residential farm estates and leisure developments.
The company is also expanding its retail and office building portfolio to generate recurring revenues.
It said it planned to launch P16.2 billion worth of new projects this year, including five mid-rise buildings, 10 horizontal developments, one condotel project and two high-rise buildings.
Filinvest Land is slated to complete the first of the four BPO buildings within the 1.2-hectare joint venture project with the provincial government of Cebu as a part of a strategic goal to triple the size of its office buildings by 2019.
It said for the retail portfolio, it would expand Festival Supermall at Filinvest City by another 46,705 square meters. It will also start constructing two malls, one in Tagaytay City and another at Princeton Heights in Cavite.
Filinvest Land recorded a 16-percent growth in 2014 in consolidated net income to P4.60 billion from P3.98 billion in 2013.
Meanwhile, Filinvest Land is also venturing into construction as part of its diversification and expansion plans.
The company said it would seek shareholders approval to amend its articles of incorporation to include the business of construction as one of its primary purposes. “The amendment of the primary purpose is in line with the company’s diversification and expansion plans,” Filinvest Land said.
“Furthermore the amendment of the primary purpose will enable the company to secure the necessary accreditation from and become a licensed contractor and member of the Philippine Contractors Accreditation Board,” it said.
Filinvest Land will join property firms such as Ayala Land Inc. and DMCI Homes, which have construction units in charge of developing their real estate developments.
Source: Manila Standard Today