Cityland to raise P1.2B from sale of debt instruments

Listed real estate developer Cityland Development Corp. is raising P1.2 billion from the sale of short-term commercial papers for project-related costs, payment of maturing loans and interest expense. In a prospectus submitted to the Securities and Exchange Commission, Cityland said P640 million in project-related costs would be used for Rada Regency, Corinthian Executive Regency, Manila Executive Regency, Makati Executive Regency, and Makati Executive Tower III. Some P350 million will be used this year while P290 million will be earmarked for the first semester of 2008. "If proceeds are substantially less than the maximum proceeds, the company will opt to renew the maturing obligations from existing financial institutions which extended the loans. Proceeds from the offering are not intended to acquire properties within the next 12 months," Cityland said. The 39-storey office, commercial and residential condominium project called Corinthian Executive Regency is slated for completion in June 2008. It is located along Ortigas Avenue in Pasig City near commercial areas. In December 2008, Cityland will also finish the 24-storey condominium Rada Regency located along Rada St., Legaspi Village in Makati City. Meanwhile, the Manila Executive Regency, is a 39-storey office, commercial and residential condominium situated along J. Bocobo St. Ermita. It is expected to be completed in December 2009. The Makati Executive Tower III, for its part, is a 35-storey office, commercial and residential condominium located at Cityland Square, dela Rosa St., corner P. Medina St. in Makati City also near to commercial establishments. As of end-June, Cityland had P1.7 billion in outstanding loans, the bulk of which came from P728 million worth of short-term commercial papers with various maturity dates in 2008. It has a P540.5-million loan from the Philippine Commercial Capital, Inc. that will fall due on Jan. 29, 2016 and a P240-million loan from the Land Bank of the Philippines maturing on Jan. 23, 2012. Some P176.05 million in loans from Security Bank Corp. will fall due on March 5, 2015. Formerly Statehouse Land Development Corp., Cityland is engaged in the development of medium to high-rise offices, commercial and residential condominiums, affordable houses, residential subdivisions and farm lots in Bulacan and Cavite. At the stock market Thursday, Cityland shares were unchanged at P1.80 apiece. - R. A. M. Rubio/BusinessWorld