[ Published by : philstar.com ] Tuesday, January 29, 2008
Rockwell Land Corp., the real estate development arm of the Lopez group, is seeking to raise $100 million through an initial public offering (IPO) of shares possibly within the year to fund the development of its centerpiece project in Makati and a new residential venture in Pasig.
Ninalyn S. Cordero, assistant vice-president for business development at Rockwell Land, said the company is preparing for its planned IPO with the assistance of Hong Kong-based CLSA, its financial advisor.
“The IPO is still being planned. There’s no timetable yet but we want to be prepared when market conditions normalize. The market is so volatile right now,” Cordero said.
She said the IPO shares are expected to account for 25 percent to 30 percent of the company’s total stocks.
About 70 percent of the offer shares will be issued to foreign investors while the remaining 30 percent will be sold locally, Cordero said.
Bong Filart, vice-president for project development at Rockwell Land, said the estimated $100-million proceeds will be used to mainly bankroll the development of the five-hectare old General Milling property along C5 Road in Pasig into a high-rise residential condominium project.
The project, called The Grove, will involve the development of five residential towers and a small commercial component, estimated to cost about P12 billion over a period of five to seven years. Construction is slated to start early next year with the initial phase costing P8 billion.
The company is also planning to start work on The Lopez Tower, which will be the last project in the upscale Rockwell Center, a prime 15-hectare community with condominium projects, sports and leisure clubs and a lifestyle shopping center located at the heart of Makati City.
Filart said the project was originally planned in the mid-90s but had been shelved due to the currency crisis that hit Asia starting July 1997.
The Lopez Tower, which will have more than 50 stories, will cost the company around P4 billion.
For its business process outsourcing (BPO) project in Ortigas, meanwhile, Rockwell is in talks with three to four locators which it refused to identify pending completion of negotiations.
The BPO project is part of a redevelopment plan of the Meralco property to include the construction of three office buildings and a residential enclave.
Valerie L. Soliven, Rockwell Land vice-president for sales and marketing, said the company is confident it can sustain its sales growth this year despite the subprime mortgage crisis in the US. Last year, the company registered sales of P5.7 billion or an increase of 30 percent from 2006 on strong demand of its residential projects.
Rockwell Land is a joint venture among the Lopez-controlled firms Manila Electric Co. with 51 percent, Benpres Holdings Corp. (24.5 percent) and First Philippine Holdings Corp. (24.5 percent).
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