Rockwell Land eyes P20B from bond market
Rockwell Land Corp. will tap the bond market to raise up to P20 billion and fund its capital expenditures. This move comes as the firm pursues the expansion of its projects.
In a regulatory filing on Friday, Rockwell Land said its board of directors had approved the bond offering under a shelf registration.
Up to P10 billion will be offered during the initial tranche, the Lopez-led developer said.
“Proceeds of the said bond issuance will be used to partially finance the company’s various capital expenditures,” Rockwell Land said.
First Metro Investment Corp. and BDO Capital and Investment Corp. were tapped as joint issue managers for the offer. They will also serve as joint lead underwriters, along with PNB Capital and Investment Corp. and RCBC Capital Corp.
Rockwell Land held a wall-breaking ceremony for its IPI Center Done Rockwell in Cebu City in July.
This marked the beginning of the property’s expansion. It will add 7,806 square meters (sq m) to the property, bringing the total footprint to 3.6 hectares.
Rockwell Land will likewise add 10,000 sq m of retail space in the development, featuring shopping, dining, wellness and specialty concepts.
Higher expenses caused a 2-percent dip in the company’s first-semester earnings to P1.91 billion.
Meanwhile, revenues grew by nearly a tenth to P9.63 billion on higher gains from its residential business. This accounted for 78 percent of the total top line at P7.5 billion.
Despite the condominium supply glut in Metro Manila, Rockwell Land said it “remains largely unaffected.” Its business primarily targets the high-end market.
Data from real estate brokers show that the middle market segment has been consistently registering high vacancy rates. This was mainly due to high mortgage rates in the capital region.
Commercial revenues, on the other hand, came out flat at P2.2 billion.
Gross expenses totaled P6.31 billion, up by 9.75 percent, on the back of higher interest expenses.
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