Vista Land’s $150-M bond issue secures top rating

MANILA, Philippines - The real estate holding unit of the Villar family has secured the highest bond score from Credit Rating and Investors Services Philippines Inc. (CRISP).

In a disclosure, Vista Land, which is looking to raise $150 million through bonds to pay existing debts, said it received the AAA issuer rating with a stable outlook from the debt watcher.

CRISP noted the company’s “leadership in the low-cost and affordable housing market, excellent financial performance, strong management team and a successful operating model.”

“The rating agency also noted that the company has an operating model that can successfully replicate large-scale housing community projects in its large land-banked properties widely spread throughout the country,” Vista Land said.

In the last five years, the property firm recorded a 22 percent average net income growth.

“CRISP also believes that the company’s leadership in the low-cost and affordable housing market segments will continue as a result of its strategic landbanking decisions and the growing demand in these sectors,” the credit rater said.

Vista Land is the holding company of five business units: luxury brand Brittany, upper middle income segment Crown Asia, Camella Homes, Communities Philippines and condominium builder Vista Residences. It will also roll out its socialized housing arm Lumina Homes Inc., that will sell homes at P1.5 million and below.

The country’s largest homebuilder is looking to refinance the $150.34 million in corporate notes that will mature on Sept. 30, 2015. The notes carry an interest rate of 8.25 percent per annum.

Vista Land will introduce to the market P28 billion worth of projects this year, two-thirds of which are under middle income brand Camella Homes.

In 2013, the country’s largest homebuilder launched 35 projects with an estimated value of P26.1 billion, 31 of which are in the low and affordable segment.

Vista Land also allotted P21 billion for capital expenditures this year, up 22 percent from P17.2 billion in 2013.

The company’s  jumped 15 percent to a record P5.06 billion last year from P4.38 billion in 2012 as real estate sales climbed 23 percent to P20.02 billion.

In the past 38 years, the property firm has completed more than 250,000 housing units in 31 provinces and 64 cities and municipalities around the country.