Cityland group gets okay for P3-B short-term CPs

The Securities and Exchange Commission (SEC) has approved the combined P3-billion short-term commercial paper issuance of Cityland Development Corp. (CDC), City & Land Developers Inc. (CLD) and Cityland Inc.

The companies comprise the Cityland group, a leading player in the real estate industry with a track record of developing prestigious condominiums. It has been in the property development business for more than 20 years.

Of the total CPs to be sold, P1.5 billion will be issued by Cityland, P1 billion by CDC, and the remaining P500 million by CLD.

CDC, formerly Statehouse Land Development Corp., was incorporated on Jan. 31, 1978 to engage in the development of land for residential, office, commercial, institutional and industrial uses.

CLD, on the other hand, caters to the low-to-middle income segments since its projects are offered at affordable prices. It developed residential units in Parañaque as well as an office and residential condominium project in Ortigas Center, Pasig City, the City and Land Mega Plaza.

Cityland will use the proceeds from the offering to pay maturing loans (P1.2 billion), finance project-related costs P250 million and operating expenses P50 million.

It has P1.58 billion worth of loans maturing Nov. 30, 2003 to Sept. 26, 2004. Among its creditors include Amalgamated Bancorp. (P800 million) and Philippine Commercial Capital Inc. (P776 million).

CDC and CLD will also use the proceeds to pay off maturing loans and fund operating expenses. Creditors of CDC include Amalgamated Bancorp. (P200 million), PCCI (P376 million), China Bank (P250 million), and Global Bank (P250 million).

CDC’s projects include medium to high-rise offices, commercial and residential condominiums located in Makati City and Mandaluyong City, affordable houses in Pasig City and residential subdivisions and farmlots in Bulacan and Cavite.