SEC okays City & Land’s P200-M STCP

MANILA, Philippines - Middle-income residential builder City & Land Developers Inc. has secured regulatory approval to raise P200 million through debt papers.

In a disclosure, City & Land said “the Securities and Exchange Commission resolved to render effective the registration of P200 million worth of short-term commercial papers.”

The approval paves the way for City & Land to sell and distribute the commercial papers to fund its capital spending.

In the first half of this year, profits of the property firm sank more than half to P64.67 million from P149.73 million a year ago as revenues plunged 57 percent to P174.53 million from P407.88 million.

City & Land’s current projects are  Manila Residences Bocobo and Grand Emerald Tower  which are 90.85 percent and 95.22 percent sold, respectively.

“With the latest acquisition of prime lots, the company plans to launch new projects in the future to increase inventory and consequently generate more sales,” City & Land said.

The properties are located along Taft Ave. and Roxas Blvd. in Manila; and EDSA corner Lanutan Alley in Brgy. Veterans Village and Samar Ave. in Quezon City.

City & Land has been using commercial papers for its capital requirements.  It secured regulatory approvals for a P1.15-billion debt paper issuance in 2008 and a P200-million fundraising last year.

City & Land, which is 49.73-percent owned by listed Cityland Development Corp., started commercial operations in 1992. Its completed projects, which cater to the low- to middle-income segments, are located in Parañaque and Pasig City.