Federal Land to issue P5-B corporate notes

MANILA, Philippines - Federal Land Inc., the property development arm of the Metrobank Group of banking taipan George S.K. Ty, will issue up to P5 billion worth of senior unsecured fixed rate corporate notes through a private placement.

Federal Land intends to use proceeds from the issue to partially fund ongoing projects.

First Metro Investment Corp. is the arranger for the issue. 

The notes have an indicative rate of 7.1288 percent to 7.5288 percent as of Feb. 18, 2011.

Federal Land, one of the country’s leading vertical developers, has developed a total of 53.57 hectares of land into 35 real estate projects consisting 4,304 residential condominium units, 4,561 upcoming units and 266 townhouses in four townhouse developments.

Among its residential and commercial developments are Federal Land’s crown jewels – Bay Garden and Bay Garden Club & Residences, Marquinton Residences and Marquinton Garden Terraces, Oriental Garden Makati and The Oriental Place, Oriental Garden Residences, Peninsula Garden Midtown Homes, The Capital Towers, The Grand Midori Makati in partnership with ORIX Corp. of Japan, Riverview Mansion, Marco Polo Plaza Cebu, and the landmark GT Tower International.

Ongoing projects include Beijing Tower, the second high-rise structure of The Capital Towers, which is strategically located along E. Rodriguez Sr. Avenue in Quezon City and Oriental Garden Heights (a P255 million mass housing project that will rise on a 8,512 square meter property in General Trias, Cavite).

Oriental Garden Heights will offer a total of 232 low-cost condominium units with an average package price of P1.67 million per unit.

Federal Land is also building The Residences, a P5 billion high-rise project in Cebu. The Residences is the first of the five-tower residential project which is located just beside the popular Marco Polo Hotel.

Aside from this, Federal Land is developing a P20 billion mixed-use complex in the northeastern part of Bonifacio Global City. The project will cover the 10.4-hectare property owned by financial services giant Metrobank and the Bases Conversion Development Authority’s two lots totaling 15.3 hectares.

The project will house a 350-room five star hotel aside from residential and commercial units that will be built.

Federal Land more than doubled its net income last year to P435 million while its net sales slightly rose to P2.18 billion.

As of end-December 2010, Federal Land had total assets of P16.37 billion as against P12.16 billion the previous level. 

Federal Land has marketing offices in Italy, Rome, Singapore, Guam and the United States. It plans to build more marketing offices in other countries where a large concentration of Filipinos reside or work.