Rockwell Land eyes P5-B bonds for project funding

MANILA, Philippines - Upscale property developer Rockwell Land Corp. is planning to raise P5 billion through long-term bonds that will bankroll its capital spending.

In a special meeting, Rockwell Land’s board of directors “approved the public offering of up to P5 billion seven-year and one quarter unsecured peso-denominated fixed-rate bonds.”

“Proceeds of the said bonds issuance will be used to partially finance its various capital expenditures, particularly the Proscenium project,” Rockwell Land said in a disclosure to the stock exchange.

Rockwell Land tapped First Metro Investment Corp. as the issue manager and lead underwriter. The last time Rockwell Land secured funding from the public was in November last year, when it raised P10 billion through corporate notes.

Rockwell Land, the property arm of the Lopez family, allotted P26 billion for five towers of the Proscenium in Makati.

The 3.6-hectare Proscenium will allow Rockwell Land to generate development income for the next eight years. Proscenium is designed by “starchitect” Carlos Ott, the man behind the L’Opera de la Bastille in Paris.

Rockwell Land has sold all available penthouse units of the Kirov, Sakura and Lincoln towers worth P60-90 million. Sales take-up from the Proscenium hit P2.5 billion as of end-2012.

For 2013, the company’s net income is expected to hit up to P1.5 billion. Last year, its earnings jumped 23 percent to P1.1 billion, up from P914.9 million in 2011.

Rockwell Land allotted P12 billion for its capital spending this year.

This will support the construction of 53 Benitez, a two-tower, mid-rise residential development designed as home for start-up families in Quezon City. In April, Rockwell Land’s Primaries brand launched 53 Benitez, which is expected to generate P2.2 billion in total revenues from the sale of its 364 units.