GT Capital Holdings Inc., the investment holding company of tycoon George Ty, has bought into its property arm Federal Land Inc., subscribing to the latter’s approximately P1.1-billion worth of shares.
In a disclosure to the Philippine Stock Exchange, GT Capital reported that it has executed a subscription agreement with Federal Land to acquire 11 million common shares of the real-estate firm’s authorized capital stock for an aggregate consideration of P1.1 billion. No further details were disclosed.
Earlier this month, Federal Land raised P5 billion in corporate financing to fund its ongoing projects, among other things.
GT Capital said in its previous disclosure to the Exchange that Federal Land recently signed a P5-billion corporate notes facility agreement with a syndicate of institutional lenders composed of banks, insurance companies, pension funds and trust institutions.
According to the group, proceeds of the facility, which consists of 7-and 10-year fixed-rate notes, will be used for the property developer’s ongoing projects, working capital and general corporate purposes.
“Due to strong institutional demand, the size of the issuance was increased from the original P3 billion through Federal Land’s exercise of the entire overallotment option,” the disclosure added.
Federal Land President Alfred V. Ty, meanwhile, said that the timing of the debt raising enables the company to capitalize on current robust real-estate demand.
“Against the backdrop of a strong economy, we have maintained a steady surge in the market demand for our high-end, middle-end and affordable projects, from the western part of Metro Manila to the eastern section,” he said.