MANILA, Philippines - Real estate developer Sta. Lucia Land Inc. (SLI) plans to push through with a planned share sale before the year ends to raise funds that would partly finance capital expenditures and working capital, a top official said.
In an interview, SLI president and chief executive officer Exequiel D. Robles told The STAR that the company is still currently deciding on the amount it intends to raise through sale of shares but said it would likely happen this year.
SLI earlier planned to raise $50 million this year through a follow-on offering.
Robles said the company is allocating P3 billion next year for its capital expenditure budget to further expand its property portfolio across the country.
He said half of the amount would be used to fund SLI’s subdivision developments, while the other 50 percent would finance condominium projects.
Robles said the bulk of these upcoming projects would be situated in Luzon, while some would be in Visayas and in Davao for Mindanao.
The listed property firm owned by the Robles and Santos families has earmarked P2 billion as its capex budget for this year, higher than the P1.35 billion it allotted in 2013. This year’s budget is being used to launch 20 new projects.
By 2016, SLI plans to put up a new mall to add to its existing Sta. Lucia East Grand Mall located in Cainta, Rizal.
Robles said the property firm is eyeing Iloilo or Davao as possible locations for the new mall.
“Malls are also a good business that is why we are eyeing an additional mall. However, my expertise is really in subdivision development,” Robles said.
SLI is one of the biggest subdivision developers in the country with some 250 subdivision projects nationwide.
From building planned residential subdivisions communities, SLI has successfully diversified into vertical residential developments.
SLI by far has served the middle income segment by providing residential units while tailor-fitting amortization schemes to make the units affordable without comprising quality.