Fil-Estate Land to wipe out debts by September

Real estate developer Fil-Estate Land Inc. expects to wipe out its debts by the end of September this year through a ‘debt-for-asset’ swap.

Following the company’s stockholders’ meeting yesterday, FELI chief operating officer Roberto Roco said the firm’s debt is now down to P279 million from the original P1.68 billion.

Roco said the full settlement of debt will allow FELI to focus on the development of ongoing and future projects.

Among the projects to be completed this year are the second phase of Cathedral Heights in Quezon City, Sun Plaza in Mandaluyong City, Richgate in Baguio, Tierra Vista in Lipa, Batangas, and the fourth phase of Canyon Woods in Lipa, Batangas.

"An investor has recently come in for the second phase of our Cathedral Heights project in Quezon City. In addition, our Sun Plaza project is 70-percent complete and is set to be launched by the third quarter of the year. We are currently renovating this project, converting it from an office building into a residential condominium," Roco said.

Cathedral Heights is a collection of 90 two and three-story townhouses forming 10 clusters of residential units in New Manila, Quezon City while Sun Plaza is a 22-story colonial-style office condominium located in the corner of Princeton Street and Shaw Boulevard in Mandaluyong City. Both projects primarily cater to the middle-income market, including Pag-Ibig members.

Roco said FELI will launch the third phase of its Richgate project in September 2005, adding that 50 percent of the units have already been sold.

FELI also expects to generate substantial revenues from its Nasugbu Harbor town project in Batangas. Phase one of the project, which involves 1,600 hectares, costs P300 million.

"We’re confident that it will be widely received by the public. We expect it to be a large revenue earner and ensure the long term survival and growth of the company when the economy improves," Roco said.

During the first quarter of its fiscal year 2004 (October-December 2003), FELI reported a 263-percent jump in its net income to P9.51 million from only P2.62 million in the previous period.