Philrealty eyes debt-equity swap with creditors

Philippine Realty & Holdings Corp. (Philrealty) is looking at converting creditors’ debt into equity in the listed property firm.

Philrealty president Amador C. Bacani said the company’s debt has been reduced to P609 million from P829 million last year.

He said the property development firm is also negotiating for a P350 million loan to finance the resumption of work at its Andrea North Skyline Tower.

Bacani said the company would need P900 million to finish the Skyline Tower, expecting this project to be completed by the end of next year.

He said Philrealty is also considering selling some assets, including the 2,800-square meter lot in Fort Bonifacio, Taguig and other properties in the provinces, to complete the construction of Andrea North Skyline.

Additional funding for the project will also come from pre-selling of residential units.

He said the company will continue to undertake measures aimed at reducing its debt to a more manageable level.

Bacani said the second tower of Icon Residences at the Fort Bonifacio Global City — its joint venture with Excell Property Ventures Inc. — is already 75 percent sold. Construction of the substructure started in January this year with Tower 1 scheduled for completion by mid-2007 and Tower 2 by 2009.

“With the prevailing favorable economic environment, which appear to be sustainable provided progress in containing the government’s budget deficit continues, we are also re-evaluating the company’s other projects which were deferred because of the crises that confronted us. Once market confidence is regained with the resumption of work at the Skyline Tower, we shall aim to recover our former standing in the real estate industry with a record of delivering trendsetting landmark projects,” Bacani said.

Since 1998, Philrealty has offered land properties to banks as payment for its obligations through dacion en pago to substantially reduce its obligations.