Robinsons Land to spend P15B till ’08
An article published in the
Business Mirror, October 6, 2006
By Honey Madrilejos-Reyes
FRESH from a successful follow-on offering of
shares Wednesday, Robinsons Land Corp. (RLC) said Thursday it would spend
P15 billion over the next two years, to put up new shopping malls in various
parts of the country and to expand existing ones.
In a press briefing, company vice chairman Lance Y. Gokongwei said the
budget for fiscal 2007 would be around P7 billion. It would be increased to
P8 billion in 2008.
Gokongwei said the proposed capital expenditure would be partly covered by
the P5.23-billion proceeds RLC netted from the sale of primary shares. The
company would also resort to borrowings in the latter part of 2008 to raise
funds.
Up to 770,585,800 offer shares were sold to international investors, of
which up to 450,000,000 were issued and offered by RLC by way of primary, or
new, offer, while around 320,585,800 existing shares were offered by the
selling shareholders such as JG Summit and two other units, as part of the
secondary offer.
Around 40,550,400 secondary common shares, meanwhile, were sold to domestic
investors at P12.00 a share.
RLC's stock price opened at P13 per share at Thursday's trading before
closing at P14.
“It affirms the fact that the Philippine property development industry is
back in full force,” said Gokongwei. “After a long down cycle, the industry
is finally climbing to even greater heights led by the many listed property
companies that have become prime beneficiaries of a stronger resurgent
economy.”
The sale of additional shares has raised the public float, or shares owned
by the public, in RLC to 40 percent from a mere 7 percent. The balance of 60
percent, on the other hand, remains with JG Summit.
The company said investors are attracted to the RLC shares given the general
optimism towards the Philippine economy, the growth of business process
outsourcing in the country and the continuing boom of the property market.
RLC is engaged in the development and operation of commercial real-estate
projects principally shopping malls, high-rise office buildings and hotels
as well as building of residential real-estate projects.