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STA. Lucia Land Inc., formerly Zipporah Realty
Holdings Inc., told the Philippine Stock Exchange that it would
raise funds through borrowing and the sale of additional shares.
In a disclosure, the property
firm said its board approved the additional public offering of its
shares. However, its application to increase its authorized capital
stock has yet to be approved by the Securities and Exchange
Commission while the terms and timetable have yet to be finalized.
The company’s shareholders
approved last July the increase in its capital stock from P2 billion
to P16 billion. The shareholders also approved Sta. Lucia Realty and
Development Inc.’s (SLR) subscription of P10 billion out of the
increase in capital.
Together with SLR, Sta. Lucia
Land would also open a credit facility amounting to P500 million
with Rizal Commercial Banking Corp. Under the terms of the deal,
P400 million would be available to Sta. Lucia Land while the balance
would be available to SLR.
“The registrant shall be a
co-borrower on any availment on the credit facility and there shall
be a cross-default provision in the credit facility [which] shall be
secured by existing properties of the registrant [Sta. Lucia Land],
those to be transferred by SLR and properties of SLR,” Sta. Lucia
Land said.
The board also authorized the
company to assume the obligations of SLR secured by the SLR Mall
along Marcos Highway corner Imelda Avenue in Cainta, Rizal. The
mall—appraised at P4.8 billion—is among the SLR assets proposed
to be transferred to Sta. Lucia Land.
The mall is mortgaged to Banco de
Oro-EPCIB and Bank of the Philippine Islands to secure SLR
obligations worth P800 million.
Last June, Zipporah Realty
changed its name to Sta. Lucia Land Inc. as SLR agreed to partially
settle the former’s debts amounting to P40.722 million.
The first batch of loans to be
shouldered by SLR amounted to P61.070 million, which was approved by
the board on July 7, 2004. The second batch of obligations amounts
to P43.479 million and its transfer approved on November 10, 2006.
 --Likha
C. Cuevas-Miel
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