Torre Lorenzo Development Corp., the real estate company of the Lorenzo group, is considering an initial public offering as a part of its plan to become a mid-size property developer by 2020.
TLDC chief finance officer and senior vice-president for support services Emmanuel Rapadas said the IPO was an option the company was considering to sustain growth beyond the next five years.
He did not give a timetable for the planned IPO.
“TLDC has a 10-year business plan. At this point, how we fund the projects is already well-planned and IPO is one of the options we’re looking at as a funding mechanism, funding opportunity to sustain the growth of the company beyond the next five years,” Rapadas said.
He said this would also depend on market conditions and valuations and readiness of the company.
Rapadas said even without the IPO, the company would be able to sustain its growth and achieve its target consolidated annual growth rate of 25 percent to 33 percent.
TLDC, known for developing premium student residences, said it would spend P30 billion to P32 billion to finance the construction of 22 projects until 2020.
It also expeÅcts to generate P60 billion in revenues from all 22 projects.
Rapadas said the company ended 2016 with P2.4 billion in gross revenues and expected a 29.2-percent growth in revenues this year to P3.1 billion.
Lorenzo said this year, the company was set to turn over four to five projects to buyers, including Torre Central near University of Sto. Tomas in Manila and Torre Sur near University of Perpetual Help in Las Piñas City.