Vista Land taps debt market to raise P5B

MANILA, Philippines - Vista Land & Landscapes Inc., the holding firm for the property ventures of the Villar family, is tapping the debt market to raise as much as P5 billion.

The additional capital will be used to support the company’s plans to launch more than P25 billion worth of projects this year, a top executive said.

“We’re still looking at various options but the main vehicle will be debt...We’re talking with some banks, probably [to secure] bilateral loans,” said Ricardo B. Tan Jr., chief financial officer of Vista Land.

“The amount we’re looking at will be in the region of P3 billion to P5 billion,” he said.

The real estate firm is spending more than P18 billion this year for its aggressive expansion that will involve the development of more residential condominium buildings and commercial projects, as well as launch more projects in new markets.

Vista Land is not looking at equity placement to raise additional cash given the current low valuation for its shares, Tan said.

Banking on robust demand amid the property boom, Vista Land is set to launch more projects this year.

Tan said the company will introduce numerous residential projects worth P25 billion to P30 billion this year, up by at least a quarter from last year.

Horizontal developments of Camella, the bread-and-butter unit of Vista Land, will account for bulk of the new projects, Tan said.

“There will be a lot in the provinces because we still have a lot of overseas Filipinos that need quality housing,” Tan said.

To date, Vista Land is present in 31 provinces and 63 cities and municipalities around the country. In January, the company launched the Camella Ozamiz, a Caribbean-themed community in one of the most progressive cities in Mindanao.

Vista Land plans to tap 12 new locations in the country as part of its expansion plans.

Riding on the wave of a booming property market, Vista Land targeted a net income of P4.2 billion and P16 billion in revenues for 2012, which would be 19 percent and 18 percent higher, respectively, from 2011.

The company will report its full-year 2012 performance tomorrow.

In the past 35 years, Vista Land has completed more than 250,000 housing units. It has a strategically located landbank of almost 2,000 hectares nationwide.

Vista Land is the holding company of five business units: Brittany, Crown Asia, Camella Homes, Communities Philippines and Vista Residences.