Cityland to raise P1.8 B for Manila condo project

MANILA, Philippines - Real estate developer Cityland Inc. is tapping the debt market to raise P1.8 billion to fund the construction of a condominium project in Manila and pay maturing loans.

Cityland on Friday obtained the approval of the Securities and Exchange Commission to issue P1.8 billion worth of short-term commercial papers (STCPs).

Proceeds from the offering would be used to pay maturing obligations and fund project costs, Cityland said in a filing with the corporate regulator.

As of the end June, the company had outstanding STCPs of P1.31 billion bearing an average interest rate of 0.9987 with a maturity period ranging from 31 to 364 days.

Around P460 million from the proceeds has been earmarked to finance the construction of The Manila Residences II.

Cityland’s Manila Residences II is a 39-storey office, commercial and residential condominium located along Taft Avenue.

As of the first half of the year, Cityland said construction of Manila Residences II is already 68.49 percent complete.

The project was launched in 2010 and as of the end of June, is already 56.18 percent sold.

Cityland said the minimum amount of the SCTPs shall not be lower than P300,000. The interest rates would also have to be fixed and payable in arrears either monthly, quarterly, semi-annually or annually or at the end of the terms based on the prevailing interest rates at the time of issuance which is at 0.9987 percent.

The Cityland Group has a track record of developing affordable condominiums in prime areas such as Makati, Manila and Ortigas.

It’s subsidiaries aside from Cityland are listed Cityland Development Corp., middle-income residential builder City & Land Developers Inc., and pre-need firm Cityplans Inc.