Rockwell eyes P5-B bond sale

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08:30 PM September 20th, 2013

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By: Miguel R. Camus, September 20th, 2013 08:30 PM

Upscale property developer Rockwell Land Corp. is planning to issue long-term retail bonds to partly finance ongoing projects, including its latest flagship, the Proscenium project in Makati City.

In a disclosure to the Philippine Stock Exchange Friday, the company said that its board had already approved a public offering of up to P5 billion in fixed-rate bonds.

First Metro Investment Corp. was hired to arrange the deal, although an offer date has yet to be set.

“Proceeds of the bond issuance will be used to partly finance various capital expenditures, particularly the Proscenium project,” Rockwell Land said in its disclosure.

The Proscenium, located beside the company’s Rockwell Center, is one of the company’s big-ticket projects and will comprise five towers requiring an estimated investment of P26 billion.

Rockwell Land officials earlier said that the company is looking to hold a follow-on share sale to help finance its expansion into the broader affordable property sector.

These products will be offered through a new subsidiary, Primaries Development Corp. Its maiden project is a mid-rise residential project in New Manila called 53 Benitez.

For 53 Benitez, Primaries is eyeing a mid-rise medium-density project with 364 units contained in two towers. The company plans to offer two- to three-bedroom units described as starter homes.

Rockwell president Nestor Padilla earlier said that he expected a sustained increase in profitability this year, as the company is projecting a profit target of P1.4 billion to P1.5 billion against a net profit of P1.1 billion in 2012.

Sales growth is projected at 25 to 30 percent this year, he said. Rockwell Land, which is 86.8-percent owned by the Lopez clan’s First Philippine Holdings Corp., was listed by way of introduction on the local bourse in 2012.

Rockwell Land shares on Friday rose by 0.54 percent to P1.85 apiece.

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