MANILA, Philippines – GT Capital Holdings Inc., the investment vehicle of banking tycoon George S.K. Ty, is infusing more than P1 billion of fresh capital into its property unit.
The fresh funding completes the capital requirements of Federal Land Inc. for 2013, a company executive said.
In a regulatory filing, GT Capital said it bought 11 million common shares worth P1.1 billion from wholly-owned subsidiary Federal Land.
“The proceeds of the capital infusion will be used to fund construction of existing projects,” Jose Mari H. Banzon, executive vice-president and general manager of Federal Land, said in a text message yesterday.
“Our capital requirements are fully funded for 2013,” Banzon added.
Federal Land committed to spend P12 billion for its property projects this year, up from the P9 billion it spent in 2012. Of the capital spending this year, P4-5 billion will be spent for the Fort Bonifacio developments.
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“The GT Capital equity infusion of P1.1 billion is in addition to the P5-billion corporate notes that Federal Land issued in early July,” Banzon said.
Early this month, the property development arm of GT Capital completed its second fundraising in the capital markets.
Federal Land issued P5-billion worth of seven- and 10-year fixed-rate corporate notes to a group of institutional lenders composed of banks, insurance companies, pension funds and trust institutions.
The property firm initially planned to issue P3 billion in corporate notes but robust institutional demand prompted the company to exercise the P2-billion overallotment option.
It is the second time that Federal Land tapped the capital markets. In April 2011, the property firm raised P6.6 billion through fixed-rate corporate notes.
Federal Land currently has 35 projects composed of 11,000 units, of which 6,200 have already been sold out.
The property firm also has P14.9 billion in unbooked revenues so far, which will be recognized in the next three years.
GT Capital is also into banking (Metrobank), automotive (Toyota Motor Philippines), power production (Global Power) and insurance (Philippine AXA Life Insurance, a joint venture with global insurance giant AXA Group).