Roxas & Co Inc., the listed holding company of the Roxas Group, said it sold P282 million worth of real estate assets in Batangas to boost net income and reduce the group’s overall debt level.
Roxas said in a disclosure to the stock exchange it sold its 6.67-hectare Natipuan beachfront property in Nasugbu, Batangas to Sta Lucia Land Inc. and a highly sought-after 12.9-hectare eco-tourism property along the Tagaytay-Nasugbu Highway.
RCI’s wholly owned subsidiary, Roxaco Land Corp., also sold a 2.8-hectare commercial property within the Nasugbu town proper to the SM Group for P98 million.
Roxas unit Roxaco-Asia Hospitality Corp. in December also raised P411 million from the sale a hotel in Cubao.
“Proceeds from the sale of Cubao of about P411 million will be used to improve existing sites and lower the subsidiary’s outstanding debt until a new site has been identified,” the company said.
RAHC operates five budget hotels under the Go Hotel franchise. These are located in key areas in Metro Manila, including Parañaque, near the three international airport terminals, North EDSA, Timog Circle, Cubao and Malate.
Roxas reported a P384.68-million net loss in the first nine months of 2019, higher than the P316.58-million loss year-on-year, due to higher higher interest expenses and the equity in net loss from sugar milling unit Roxas Holdings Inc.
Nine-month revenues amounted to ₱624.42 million, up 61 percent against last year’s ₱387.47 million. Revenues were higher across all business units, which include real estate sales, coconut exports and both Go Hotels and Anya Hotel.
Roxas started to sell several assets and investments to reduce debt and improve the company’s liquidity.
It has refinanced about ₱450 million of the outstanding long-term debts with new term loans and longer repayment terms with a two-year grace period before repayment. It secured new short-term credit lines with banks to support operations.
The company’s total liabilities stood at P4.954 billion as of end September.
