PROPERTY developer Vista Land and Lifescapes Inc. is planning to raise at least $100 million this year to refinance maturing debt and fund the construction of leasing projects following record earnings in 2014.
At a press briefing, Vista Land president and chief executive officer Manuel Paolo Villar said, “We’re taking advantage of the low interest rate environment. Most of the bond tenors we have are at five years, so maybe five year or longer for this issue.”
He added: “We’re comfortable with raising at least a $100M this year, which is basically to fund our commercial developments. Our commercial revenue — BPO [business process outsourcing]and retail — right now, we’re growing that.”
“I think there will be a big jump in commercial revenue this year. You’ll see a realization in revenues this year,” he added.
Vista Land is borrowing $100 million partly to settle $46 million in maturing loans this year and to fund capital expenditure.
The company registered a banner year in 2014 as net income improved by 13 percent to P5.7 billion from P5.06 billion in the previous year, while revenues went up 11 percent to P22.2 billion from P20.02 billion.
The top revenue contributors were Camella Homes at 28 percent; Crown Asia, 11 percent; Vista Residences, 9 percent; and the regional Communities Philippines, 47 percent.
Some 44 projects were launched last year valued at P27 billion, 40 of which are. in the low and affordable segments, two in the middle income segment, and another two in condominiums.
Though figures are not yet finalized, Villar said there will be a “significant increase” in the firm’s capital expenditures (capex) this year from the actual P21.1 billion spending last year.
Last year’s P21 billion capex went to land acquisition (P3.7 billion), land development (P4.5 billion), and construction (P12.9 billion).
“We’re still finalizing the capex but definitely, there will be a significant increase this year. We’re building up more in Vista City and more locations, and also [boosting]our BPOs,” Villar said.
Vista City is the firm’s 1,500-hectare flagship central business district development, which is a 25-year development that will stretch across Muntinlupa to Las Piñas, Cavite and Laguna. Vista Land allotted P50 billion for the first five years of development.
Vista land also increased its land bank last year to 2,112 hectares from 2,001 hectares in 2013.
“We’re expanding in a lot of new areas this year — Luzon, Visayas, Mindanao. We’ll be expanding in all three this year. Fifty-three percent of revenue is in Luzon, particularly in Metro Manila, and the rest are in the Visayas and Mindanao,” he added.
Incorporated in 2007, Vista Land is primarily engaged in the real estate business, mostly in the low and middle income segments, and has been recently working to diversify into the hotel business.