Gokongwei-led property developer Robinsons Land Corp. plans to tap the domestic debt market in the next 90 days to fund part of its P16-billion capital spending plan for this year.
RLC president Frederick Go told reporters at the sidelines of a recent Euromoney forum that the company was upbeat about prospects for the local property market this year.
“The market looks good. Demand is still strong across the board—retail, office, condos, [residential] condominium and hotels. We are trying to capitalize on these,” Go said.
The P16-billion capital outlay for this year will mostly fund the development of new malls, and office and residential buildings. The hotel business is seen to get the smaller part of the pie, he said.
At the very least, RLC states that it would develop three to five new malls year. “But we try to do four or five,” Go said.
In recent years, RLC has focused on growing its property portfolio to boost recurring earnings from rent payments.
In the next few months, Go said RLC would raise raise some domestic debt, whether in the form of corporate notes or bonds.
Both corporate notes and bonds are long-term debt securities. Notes are offered to no more than 19 institutional investors and are considered as private debt deals, while publicly-offered retail bonds require a more tedious registration process.
This year’s outlay of P16 billion would be funded via debt and internally generated cash, Go said, but the mix had yet to be finalized. Doris C. Dumlao