Filinvest to issue P1-B long-term papers

Filinvest Land Inc. will issue up to P1-billion worth of long-term commercial papers to help service its debts and finance its working capital requirements, the company told the Philippine Stock Exchange.

FLI corporate secretary Dante Ramos said the company’s board of directors had authorized the issuance of the debt papers "for purposes of financing the Corporation’s various development projects as well as the Corporation’s working capital requirements, including servicing of obligations."

The additional LTCP issuance would bring up its outstanding debt float to P3 billion.

Early this year, the Gotianun-owned property developer launched several housing projects ranging from affordable to high-end residences, namely Auburn Place in Pamplona, Las Piñas; Woodville in Gen. Trias, Cavite; and Miramonte in San Pedro, Laguna.

Other than residential property development, FLI will start its first industrial project – the 325-hectare Filinvest Technology Park in Calamba, Laguna recently proclaimed by the government as an economic zone.

FLI also maintains a 20-percent stake in Filinvest Alabang Inc., which is developing the Filinvest Corporate City. The 18-hectare Northgate Cyberzone within FCC is now a fully operational information park with the recent completion of two four-story building at the Plaza block of which over 60 percent of the total floor area has been leased out.

In the first half of 2001, FLI earned P320 million, a 14 percent drop from P374 million in the same period last year as decreased income from other investments and higher operating expenses weighed down the gain in revenues.

Also indicative of the continuing difficult business environment, FLI realized near flat growth in gross profit on sales of subdivision lots and houses, from P496.3 million to P505.3 million during the period.

The slight increase in sales of affordable and middle income projects was contributed by the Springfieldview, Fairwayview and Crystal Aire subdivisions in Cavite; Serra Monte Mansions in Cainta; and regional projects in Cebu and Davao.

The company derives an almost equal mix of sales coming from middle-income and high-end projects accounting for 51 percent of total revenues, while 49 percent is contributed by sales of socialized housing units.