Construction company and real estate developer D.M. Wenceslao & Associates Inc. said Wednesday it plans to spend P10.9 billion in 2018 to 2020 to finance the construction of nine projects.
The company said in a registration statement filed with the Securities and Exchange Commission relating to its planned initial public offering that it would spend P3.1 billion this year, P3.52 billion in 2019 and P4.34 billion in 2020.
“We believe that the combination of our cash flow, available bank borrowings and the proceeds of our IPO will be sufficient to fund our planned capital expenditures for the three years ending Dec. 31, 2020,” DMWAI said.
“However, although these are our current plans with respect to our capital expenditures, such plans may change as a result in circumstances and the actual amount of expenditures may vary from the planned amount of expenditures for a variety of reasons, including changes in market conditions, competition and other factors. As we continue to expand, we may incur additional capital expenditures,” it said.
DMWAI earlier said it had nine projects in the pipeline to expand its real estate footprint and broaden the source of recurring income.
The company said of the nine projects, three are residential that would provide a total salable floor area of 88,000 square meters and six commercial developments that would add 280,000 sqm of leasable area.
All nine projects, which include the group’s first residential development Pixel Residences, are slated for completion over the next five years.
DMWAI said that as of Dec. 31, 2017, it completed seven investment properties, six of which are located in Aseana City including Aseana One, Aseana Two, Aseana Powerstation Building, Aseana Town Center, Aseana Square and S&R, with a total leasable floor area of 59,000 sqm.
DMWAI owns 57 hectares of land in Metro Manila mostly in the 110-hectare Aseana City, one of the country’s largest and fastest-growing mixed-use business districts.
The company plans to raise up to P17.8 billion in proceeds from the sale of 679.2 million common shares with an over allotment of 101.876 shares at an offer price of P22.90 apiece.
The company plans to conduct the share sale in May.