Ortigas group set to raise P6B in ’14 via debt issue
The Ortigas family’s OCLP Holdings is considering raising about P6 billion in long-term debt this year to finance ongoing expansion programs and refinance loans, a company official said on Monday.
Joselito Santos, OCLP Holdings’ general manager for real estate, said in a briefing Monday that the fresh funds would help support plans to sustain growth in revenues, which he said may hit about P5 billion next year.
Santos said the group was in talks with major banks, including Bank of the Philippine Islands and BDO Unibank for the debt sale.
“We are finishing that this year,” Santos said on the timing for the debt issuance.
The company’s main revenue sources come from its commercial outlets like the Greenhills Shopping Center in San Juan and Tiendesitas in Pasig, where it also operates office buildings. It also sells upscale residential condominiums in Greenhills, Circulo Verde in Quezon City and Capitol Commons in Pasig.
Santos said the company’s commercial footprint would expand by about 30 percent to over 260,000 square meters by the end of 2014. He said this was mainly due to the opening of a new building in Greenhills with about 40,000 square meters and a shopping mall in Capitol Commons.
For the year, Santos added that the company would spend about P4 billion, which he estimated was about the same figure spent in 2013.
He declined to comment on plans for the company to go public, but noted that it was still in the cards.
OCLP Holdings is in the midst of a shareholder dispute related to the proposed entry of rivals SM Group and Ayala Land Inc.
The company is majority-owned by two main Ortigas factions—each with a significant minority stake—that have allied with either SM and Ayala Land, and the Roman Catholic Archdiocese of Manila.
Developments last year allowed the Ayala-backed faction to gain an edge in the board after it obtained the support of the Roman Catholic Archdiocese of Manila, which has a tie-breaking vote.
The move was questioned and has prompted the filing of further cases, which remain pending with the courts.
OLCP Holdings owns about 55 hectares of prime land in Metro Manila, making it an attractive takeover target for some of the country’s largest developers.
The company’s other projects include upscale residential neighborhoods in Metro Manila like Wack-Wack, Greenmeadows and Valle Verde.
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