Robinsons Land seen raising $220M
An article published in The
Philippine Daily Inquirer, June 26, 2006
By Elizabeth L. Sanchez, Christine A. Gaylican
Property GIANT Robinsons Land Corp. is bent on raising $220 million in
fresh capital.
The plan, however, may have to be pushed back a little as the company waits
for the regional markets to stabilize, sources said.
RLC was earlier considering the offering of new shares as a way of raising
funds in July.
RLC president Lance Gokongwei said the offering might happen this year but
this would depend on market conditions.
Sources said RLC might push through with the offering either by the fourth
quarter of this year or the first quarter of 2007.
Markets across the region have suffered a beating largely due to jitters
over the fate of US interest rates and its ripple effects on the US and
Asian economies.
To follow the successful offering of its sister firm Universal Robina Corp.,
which raised P12 billion from the sale of shares this year, RLC's share
offer will consist of up to 932.8 million shares. About 450 million of these
shares will come in the form of primary offering.
The price will be computed based on the average trading price of RLC's
shares during the 10 days preceding the pricing date of the offer, subject
to a discount of up to 10 percent. RLC has tapped UBS Investment Bank to
handle the deal.
RLC's shares offering exercise is expected to boost the liquidity of its
shares. For its sister firm, URC, the public float was increased to 40
percent from 10 percent.
RLC, whose budget was set at P6 billion this year, is launching two major
residential projects in the next two years. These projects will have the
Binondo-based Filipino-Chinese communities and overseas Filipino workers as
target markets.
The company will start construction next year of Otis 888, its second
upscale townhomes cluster project on the four-hectare old Manila Gas
property which the company recently acquired from the government.
Otis 888, which is on Otis Road beside UN Avenue in Manila, will consist of
200 townhome units to be built on three hectares of the four-hectare old
Manila Gas lot.
RLC is also planning to put up a three- to four-story mall on the remaining
one-hectare lot. A call center will take up 10,000 square meters of the mall
space, and may cater to 1,500 to 2,000 seats. The mall is slated to be
opened in 2007.
Another major residential project in the pipeline will be built on RLC's
9.3-hectare lot in Merville, Parañaque City.