Rockwell raising P7B for projects

MANILA, Philippines—Upscale property developer Rockwell Land Corp. plans to raise as much as P7 billion from debt or equity within the year to boost fresh funds for residential and commercial property development.

In a briefing after the company’s first stockholders’ meeting as a listed company last Friday, Rockwell president Nestor Padilla said the company was bracing for further expansion. Part of the strategy was to broaden its residential market as well as expand its leasing portfolio and landbank.

“Our country is experiencing a growing affluence where high networth individuals are estimated to grow by 20 percent annually.  This is our time,” Padilla said in a report to stockholders.

Rockwell’s capital spending for this year was placed at P7-P8 billion, said Rockwell vice president for finance Ellen Almodiel. The company announced plans to begin construction on three new high-value projects in Makati and Quezon City.

Given the company’s expansion plans, Padilla said he would like to put in place fresh funding within the year. “Debt is attractive as interest rates remain low but on the other hand, the equity market has not been this bullish,” he said.

Rockwell has a public float of about 13 percent, representing the investors in Manila Electric Co. who received Rockwell shares as property dividends. The remaining 87 percent is held by the Lopez group, which bought out the shares held by other key investors like the group of businessman Manuel V. Pangilinan and San Miguel Corp.

Rockwell is seen on track to breach P1 billion in net profit for 2012 and aims to double this in five years or less.