Fil-Estate inks $12.5-M loan pact with HK fund

Property developer Fil-Estate Land Inc. (FELI) has inked a $12.5-million loan agreement with Hong Kong-based LIM Asia to accelerate the development of the company’s various tourism projects.

LIM Asia is managed by Peter Churchhouse, a real estate specialist in the Asia-Pacific region, and is composed of an alternative real estate fund and an arbitrage fund.

Under the agreement, LIM Asia will subscribe to approximately 80 million Fil-Estate shares at P1 each. FELI will also issue LIM Asia warrants worth P136 million for the loan.

FELI said negotiations are ongoing for an additional $5-million convertible bond or equity-linked issue.

Proceeds from the transaction will be used to fund the ongoing development of Harbourtown in Nasugbu; a golf resort in Laurel, both in Batangas; Fairways and Bluewaters in Boracay, and Camp John Hay in Baguio City.

Some of the funds will go to the construction of a residential and commercial complex in Quezon City.

"With the infusion of foreign funds, we will fasttrack the development of our landbank for which we have masterplans. We will invite a select group of local and foreign developers to co-develop and become locators within the masterplan, as envisioned by the group," said a top FELI official.

FELI has set aside P1.5 billion for its real estate development projects this year and next year in its bid to regain its status as one of the leading property firms in the country.

The company has lined up eight projects that are expected to provide a stable recurring income for the group. With all these projects in place, FELI expects to fully settle its debts by the end of the year through revenues generated from its projects.

Among the company’s ongoing projects are the Phase V expansion of Manila Southwoods; Twin Lakes (a mixed-use project in Laurel, Batangas); Sto. Domingo Place (a residential condominium building in Quezon City), Mulligans Golf Hotel in Boracay, ParcoBello (a residential development with golf course in Muntinlupa); and Festival Villas in Iloilo.