Listed property firm IRC Properties Inc. is looking for potential “strategic investors” for a private placement it plans to conduct in the first quarter of this year.
Proceeds of the placement will be used to partially fund its full-year capital expenditure (capex) program.
In a disclosure to the Philippine Stock Exchange, IRC said certain members of its board of directors were “authorized and directed to look for and negotiate with interested investors on the terms and conditions, as well as other details, of the said private placement.”
Over the holidays, IRC president Esteban Pena Sy told The Manila Times that the company plans to make a share placement in the first quarter of 2015 to raise P500 million to P600 million.
Funds raised from the placement will supplement internally generated funds to provide for the company’s P800 million to P1 billion capex program for 2015.
Capital spending for this year will be used for the further clearing of land titles at its 2,200-hectare lot in Binangonan, Rizal and fund ongoing and future horizontal housing projects in the area.
In July last year, Pena Sy said the firm was still in the process of clearing about 20 to 30 percent of land titles within the Binangonan property due to numerous individuals claiming parcels of land in the area.
As of December last year, the company had already cleared about 142.4 hectares of the Binangonan land and obtained 191 titles of the cleared properties.
Some 60 hectares of the 2,200-hectare Binangonan lot has already been cornered by several property firms.
These include the 15.12-hectare joint venture development with Dreamhauz Management and Development Corp. signed in August 2010; the 8.72-hectare joint development agreement with Dell Equipment & Construction Corp. forged in July 2012; the 18 hectares sold to Hundred Lake Development Corp. in September 2013; as well as the 18 hectares sold to Amaia Land Corp. for development of low-cost houses with funding coming from the Home Development Mutual Fund (Pag-Ibig).
IRC reduced its net losses in the first nine months of 2014 to P13.62 million from P47.71 million in the same period in 2013 on lower operating expenses despite a decline in revenues, which fell to P8.38 million from P11.81 million previously.
Incorporated in 1975, IRC was originally involved in minerals, oil and gas exploration and later changed its operations to real estate.