MANILA, Philippines - Real estate developer CDC Holdings Inc. has set aside P1 billion for its capital expenditures this year to fund ongoing projects as it aims for higher sales.
Charlene Chua, CDC Holdings vice president for sales and marketing, said the amount, the highest budget set by the firm so far, would be used for five projects.
Among these projects is the 25-story commercial and residential condominium Sentrale, located along Dian St. in Makati City.
The firm is also developing the Citadines Millenium Ortigas residences project located on a 1,700-square meter property at the corner of Ortigas Ave. and Sapphire St.
Other ongoing projects requiring funding this year are the 1.9-hectare condominium project called Lions Park Residences in Sun Valley in Paranaque City, the 1.4-hectare riverside condominium community Manila Rivercity Residences and the Rivergreen Residences, both located in Sta. Ana, Manila.
“It (P1 billion) is a record figure...We have a commitment to finish the projects,†Chua said.
Last year, the firm spent P600 million to fund its projects.
As CDC Holdings has set aside higher capital expenditures this year, Chua said the firm is looking at borrowing from banks to raise funds.
The firm is likewise planning to raise capital via private placement.
“We are looking at (raising) P400 million from private placement. We are talking to local and foreign investors,†Chua said.
CDC Holdings is spending more as it seeks to achieve higher sales this year.
The firm has set a P2 billion sales target for the year.
Last year, the firm’s sales reached P1.14 billion, 47.5 percent higher than the P800 million in 2011.
Its net income surged 150 percent to P109 million last year from the 2011 level.