Italpinas Development Corp. (IDC) has secured a P350-million term loan agreement with the Development Bank of the Philippines (DBP) to partly fund the construction a project.
The green builder is using the money to finance the first phase of construction of the Primavera City project in Cagayan De Oro. The project is a seven-tower mixed-use development featuring office, residen ial, and commercial spaces.
The loan agreement was signed on Friday.
In an interview with reporters, IDC Senior Vice President Harold Dacumos the project development is divided into four phases.
“First Phase will involve Tower One and Two. Second phase will involve Tower Three and Four. Third Phase, Five and Six. The last phase will be the high-rise condotel,” Dacumos said.
The construction of the first phase will commence in July, about a month after the project launch on June 18.
The five -year term loan will come in tranches.
“DBP will be providing P350 million to partially finance the construction of Phase 1 of Primavera City Towers 1 and 2. They have committed to provide that amount and it will be released in two tranches. The first tranche will be P200 million. This will construct Tower 1, including the Tower 2 podium,” Dacumos said.
The first phase will cost P572 million, Dacumos noted.
Tower 1 and 2 will translate into P1.4 billion worth of gross revenue once completely sold out.
Italpinas intends to dispose all units of the first two towers in 2 years.
Phase 1 of the development is expected to run 20 months, with the first tower taking at least 14 months to build and the second tower around 8 months, said IDC Chairman Romolo Nati.
Primavera City is a follow-up to IDC’s flagship Primavera Residences, also in Cagayan De Oro.
The residential project was recognized by the International Finance Corp. for receiving the World Bank Group’s Excellence in Design for Greater Efficiencies (Edge) certification.