CEBU, PHILIPPINES
CEBU, Philippines - After reaping positive sales performance from its condominium units at the Persimmon, the 1.4 hectare urban village project located in Mabolo, Aboitiz Land Inc., is now on the planning stage of building another two towers that would cost around P8 million of investment.
“We are on the planning stage now. Soon, we will announce the construction of two more towers of Permission,” said AboitizLand vice president for sales, marketing and customer service Pia Mantecon.
AboitizLand president Andoni Aboitiz said in an earlier interview that the company is spending at least P4 million for every tower. Now, Persimmon” has two twin-towers. All the 157 units at Tower 1 are already sold out, while the other tower with the same number of units is currently 40 percent taken.
Last Friday, AboitizLand formally opened the commercial component called “Persimmon Plus” a support facility which offers a total leasable area of 2,200 square meters.
At present, there are already seven merchants operating at “Persimmon Plus,” these include; Mr. Coffee, Happy Roaster Home Furnishing Store, Urban Indulgence Family Organic Spa and Salon, Softwash Laundromat, Cebu Trip Tours, and Flores fashion shop.
The Permission is the first condominium residential project of AboitizLand and is the first integrated urban village in Cebu.
The company announced earlier that it is spending P2 billion this year, to introduce more residential projects in Cebu, including expansions of its existing developments.
Bigger chunk of the capital expenditure (capex) allocation for this year will be poured on the expansion of “Persimmon.” The company will be spending about P400 million for the construction of each tower.
Aboitiz said the company is on the constant lookout available land, for other projects, especially for condominium developments, as it has seen a strong take up of condominium units in Cebu, since the company offered the Towers 1 &2 units to the market.
Part of the expenditure will also be used to construct the commercial segment of its high-end residential project in Talamban—the Pristina North, including the Town Houses component of the chic subdivision.
AboitizLand’s middle-range subdivision project in the Southern part of the City, Kishanta, will also be expanded next year, as take up sales is also starting to gain some ground, he said.
The company expects to complete all the 628 condominium units at 1.4 hectare Persimmon project located in Mabolo area soon.
“[We noted] good performance of [real estate] sales especially in the condominium market. Some years ago we made judgment call that Cebuanos will embrace condo living,” Aboitiz said adding that today, the condo market is hitting very strongly and the projects a more competitive market in the next few years.
“We are studying some areas and good properties [around Metro Cebu] for our future condominium development projects,” he said.
Source: The Freeman Cebu
CORPORATE REGULATORS have approved the initial public offering of Gokongwei-led Cebu Air, Inc., allowing the budget airline to secure almost P12 billion in cash from the equities market.
BUDGET AIRLINE Cebu Pacific plans to raise P12 billion from the initial public offering to increase its fleet. -- Crecencio I. Cruz
The SEC approved the “offer of [Cebu Air] shares, consisting of up to 125.253 new shares to be issued and offered by the company, and up to 110.309 million existing shares offered by the selling shareholder, and up to 35.334 optional or over allotment shares.”
Cebu Air can offer as much as 164.894 million shares internationally while 47.112 million and 23.556 million shares will be sold to Philippine Stock Exchange brokers and investors, respectively, at a maximum price of P95.00 each.
ATR KimEng Capital Partners, Inc. was tapped as the domestic lead underwriter while the Hong Kong branch of Deutsche Bank AG and J.P. Morgan Securities, Ltd. will be the international underwriters.
Net proceeds from the primary offering were estimated at P11.561 billion.
Last week, Cebu Air said it would use the bulk of funds to be raised from the IPO to buy up to 20 more aircraft within five years.
“It’s going to be for capital expenditures for purchasing airplanes. We have a purchase order from Airbus for 15 Airbus A320 in the period of 2010 to 2015 and an option to buy five more,” said Bach Johann M.
Sebastian, senior vice-president for corporate planning of listed JG Summit Holdings, Inc., in an interview early last week.
Mr. Sebastian said going public was only one option, and that the company could also borrow from export credit agencies. Cebu Pacific can also tap the lease market, he said.
Documents showed the carrier needed to make P9 billion in advanced payments to increase its fleet to 49 by 2014.
The company originally planned to go public in 2008 but postponed the listing due to difficult market conditions.
Cebu Air turned around last year by posting a net income of P3.184 billion, from a net loss of P3.259 billion in 2008. Operating income almost doubled to P3.164 billion from P1.727 billion in 2008.
Shares in parent firm JG Summit Holdings rose to P8.50 apiece yesterday from P8.30 per share on Wednesday.
Source: Businessworld Online
MANILA, Philippines - Capitalizing on strong demand for affordable housing, Vista Land & Lifescapes Inc. has lined up 22 new projects this year under the Camella brand, translating to 17,500 new units located all over the country.
In a statement, Vista Land said the move is aimed at further cementing Camella Homes & Communities’ dominant position in the affordable housing segment and boost its total portfolio to 97 projects nationwide.
Camella president Maribeth Tolentino said these new projects will be put up in various areas in Mega Manila as well as in key provinces and cities outside Luzon such as Cebu, Iloilo, Tacloban, Cagayan de Oro, Davao and Gen. Santos.
“We are leveraging the bigness of Camella, in terms of geographical reach, land banking, contribution to group sales, number of houses built and other key attributes, to achieve two aims more effectively. One is to be the first choice of home buyers on the basis of long-term satisfaction based on enduring quality and value. The other is to achieve higher levels of financial and operational efficiencies, and thus profitability,” she said.
Tolentino said the company, which has been providing value for money homes in master-planned communities for over 30 years, is targeting overseas Filipino workers who want to buy a house of their own.
Vista Land has earmarked P10 billion for capital expenditures this year for the launch of 30 new projects and landbanking activities. This would bring the group’s total number of projects to 157 , widely dispersed in 19 provinces and 46 cities and municipalities
Vista Land has built the largest number of homes among all local developers, a total of more than 200,000. Other companies under its wing include Brittany, which builds high-end communities; Crown Asia, focusing on the mid-range category; Communities Philippines, which develops projects in the provinces; and Vista Residences, the newly launched company and brand name which consolidates all of the group’s residential condominium projects.
Source: The Philippine Star
DIVERSIFYING food and beverage giant San Miguel Corp. is looking at pushing through this year with its plan to take a majority stake in Petron Corp.
"I think we might exercise the option this year," Ramon S. Ang, San Miguel chairman and president, told reporters yesterday.
San Miguel in December 2008 signed an option agreement with Petron’s owner, UK investment firm Ashmore Group, for a 50.1% stake in the refiner via the purchase of Ashmore unit SEA Refinery Corp. The option, which cost San Miguel $10 million, expires in December this year.
Exercising the option, Mr. Ang said, would be followed by a tender offer.
Ashmore currently owns 91% of Petron but last year already allowed San Miguel to join the refiner’s board.
Ashmore first bought into Petron in March 2008 by taking Saudi Aramco’s 40% stake for $550 million. The investment firm later that year raised its interest to 51% via a tender offer, then capped the year by purchasing the government’s 40% stake for P25.7 billion. At the time of the government stake sale Ashmore said it could turn around and resell to another party.
Mr. Ang’s statement sent Petron share prices to as high as P6.20 yesterday. The firm closed the day at P5.60
Source: Businessworld Online
TWO LANDMARK LAWS -- one allowing the sharing of taxpayer information with foreign entities and another making it easier for Filipinos to secure land titles -- have been signed into law by President Gloria Macapagal Arroyo.
Approval of Republic Act 10021, or the Exchange of Information on Tax Matters Act of 2009, was prompted by the Organization for Economic Cooperation and Development’s (OECD) blacklisting the country as a tax haven last year.
"It is the declared policy of the State to promote and pursue tax environment that contributes in sustaining a favorable international investment climate and instills confidence in the adequacy and capacity of the country’s tax administration to comply with its commitments under existing international conventions or agreements on tax matters," Section 2 of the new law, signed by Mrs. Arroyo last March 5, states.
It allows the Bureau of Internal Revenue chief to inquire into bank deposits and other related information held by financial institutions following a requests by a foreign tax authority.
The new law likewise allows a foreign tax authority to examine the income tax returns of taxpayers in the country.
Local authorities had previously said they could not comply with the international tax information standard given bank secrecy laws, among others.
While the Philippines was quickly put on by the OECD on a "grey" list last year after local officials committed to pass relevant laws complying with an international tax standard, France last month said the country was on its list of tax cheat-friendly states.
Mrs. Arroyo, meanwhile, also signed into law Republic Act 10023, otherwise known as the Act Authorizing the Issuance of Free Patents to Residential Lands, last March 9.
It amended Commonwealth Act 141 or the Public Land Act.
The new law states that Filipinos who occupy untitled residential lands for at least 10 years -- down from the previous requirement of 30 years -- may apply for titles.
It also makes it easier for landowners to apply for titles as they simply have to apply for one at the Department of Environment and Natural Resources without the need to hire the services of a lawyer.
Landowners, however, will only be given titles as long as the land will be used for commercial purposes.
Banks are expected to benefit from the new law as the land titles can be used as collateral to secure loans from banks.
"This will boost lending since the landowners will now have collateral for borrowing," Chamber of Thrift Banks Executive Director Suzanne I. Felix said in a text message yesterday.
Source: Businessworld Online
