Developer cleared to raise P8 billion for expansion, refinancing

A major real estate developer has secured approval from the Securities and Exchange Commission (SEC) to raise as much as %u20B18 billion through a preferred share offering, aimed at supporting refinancing, expansion, and group-wide digitalization.

In a meeting on July 8, the SEC en banc approved the company’s registration statement covering up to eight million preferred shares, subject to final compliance with regulatory requirements. The offer comprises six million shares as the base tranche, with an oversubscription option of up to two million. Each share is priced at %u20B11,000.

If fully subscribed, the offering is expected to net around %u20B17.93 billion. The funds will be used to refinance existing obligations, invest in ongoing real estate developments, and support capital expenditures across the company’s other businesses, including hospitality and energy.

The preferred shares, set to be offered between July 21 and 25, will be listed on the Philippine Stock Exchange on August 4. The shares are structured as perpetual, cumulative, non-voting, and redeemable.

The offering will be managed by BPI Capital Corp., which also serves as the sole issue manager. BDO Capital, China Bank Capital, Land Bank of the Philippines, and Security Bank Capital are tapped as joint lead underwriters and bookrunners.

According to the company’s chief finance officer, 47 percent of this year’s %u20B124-billion capital expenditure budget will go toward real estate projects already underway. Another 40 percent will fund growth across other portfolio segments such as hospitality and renewables, while 10 percent will support internal digital transformation and shared services.

The fundraising initiative comes as the developer targets 20-percent annual growth and positions itself for continued expansion in key sectors.