Cityland gets SEC okay for P900-million STCPs

MANILA, Philippines - Cityland Development Corp. (CDC) has obtained the Securities and Exchange Commission’s approval to issue P900 million worth of short-term commercial papers. Proceeds from the issue will be used by CDC to pay down maturing loans to Philippine Commercial Capital Inc., Land Bank of the Philippines and Security Bank.

As of end-September this year, CDC had outstanding loans of P1.97 billion.

Around P240 million of the total proceeds had been allotted for the construction of the  Makati Executive Tower III and Mandaluyong Executive Mansion.

The Makati Executive Tower is a 37-storey commercial, office and residential condominium located at Cityland Square, Sen. Gil Puyat Ave. It was 91.99 percent complete as of Sept. 30, 2009.

The Mandaluyong Executive Mansion, on the other hand, is a seven-storey office, commercial and residential condominium located in Bgy. Vergara. 

CDC, a member of the Cityland Group of Companies, earlier raised its authorized capital stock from P1. 9 billion to P3 billion.

The company is currently developing The Manila Residences, a 39-storey office, commercial and residential condominium along Taft Avenue. It has completed over 35 condominium projects, holding the record of delivering all its launched projects.

CDC is on the lookout for quality projects suited for the middle and working class which will be situated at convenient locations with affordable and flexible payment terms.

Funding for its projects will come from internally-generated cash and additional borrowings.

As of end-December last year, CDC had total assets of P 7.84 billion, up 21.17 percent from P6.47 billion due to an increase in installment contracts receivables, real estate properties for sale and for future development.

Net earnings of CDC rose 8.21 percent last year to P520.33 million, largely driven by sales from Makati Executive Tower III and Rada Regency located in MakatiCity; Manila Executive Regency in Manila City; Corinthian Executive Regency and Grand Emerald Tower (a project of CLDI) in OrtigasCenter, PasigCity.