Cebu Landmasters Inc. signed an P8-billion corporate notes facility agreement with several banks and the Social Security System to finance strategic land acquisitions.
The notes, which will have a tenors of 5 years, 7 years and 10 years, were oversubscribed, prompting Cebu Landmasters to exercise a full over-allotment option.
Cebu Landmasters plans to use proceeds from the offering to fund land acquisitions in the new expansion areas of Puerto Princesa, Leyte, Butuan and General Santos, as well as cities where it already operates, namely Cebu, Bohol, Bacolod, Cagayan de Oro and Davao.
“Part of the proceeds will also fund the development of a 22-hectare central business district hub in Matina, Davao,” according to a March 9 disclosure to the Philippine Stock Exchange.
Banks that participated in the notes offering were Bank of the Philippine Islands, China Banking Corp., Development Bank of the Philippines, Land Bank of the Philippines, Rizal Commercial Banking Corp. and SSS.
BPI Capital Corp. and China Banking acted as co-arrangers of the offering.
The property firm earlier announced plans to use its current landbank of 1,245,485 square meters to roll out more projects this year in new locations such as Iloilo, Bohol and Ormoc.
It is exploring new areas and tapping new markets, such as Tacloban, General Santos, Roxas City, Boracay and even Palawan.
Cebu Landmasters is building up to 200,000 sq. m. of gross leasable area and expand its hospitality portfolio to over 1,600 rooms in the next two to three years.
“CLI will continue to grow and fortify its presence in VisMin, deliver a diversified range of products aimed towards filling the needs in other major growth centers of the region, and keep our excellent financial performance,” the company said.
Cebu Landmasters in 2019 launched P18 billion worth of projects, generating reservation sales of P12.67 billion, up 31 percent from P9.6 billion in 2018.