Cebu Landmasters Inc. (CLI), a property developer in the Visayas and Mindanao, on Monday said it entered into a P3-billion notes facility agreement with BPI Investment Management Inc.
The company said proceeds of the fundraising will beef up its capital expenditures pegged at P12 billion this year, which includes its expansion into the dormitel business in Cebu City and other strategic acquisitions in the Visayas and Mindanao.
The said notes facility will be earmarked primarily for the construction of its projects including the 300-room mixed-use dormitel in Cebu City and for acquiring properties in several strategic Visayas and Mindanao locations.
A portion of the proceeds will also be used to begin groundwork on the 100-hectare reclamation project for its techno business hub in Cebu, the company said.
The deal was arranged by BPI Capital Corp.
“We fully intend to live up to our obligations and ensure mutual value and success for our investors. We look forward to a long and fruitful partnership that will bring shared value to all parties,” said CLI Chief Finance Officer Grant Cheng.
This is CLI’s second partnership with BPI Investment, following its deal in October 2019, in which the company entered into a P2-billion facility.
CLI said its income for 2020 fell 8 percent to P1.84 billion from the previous year’s P2.01 billion as the lockdowns affected its operations.
The company said its revenues fell 2 percent to P8.29 billion from P8.49 billion in the previous year, mainly as a result of the slowdown in construction activities due to a series of lockdowns.
Most of its revenues came from real estate sale which fell 3 percent to P8.14 billion from the previous year’s P8.39 billion, while its rental revenues declined 13 percent to P55.2 million from the previous year’s P63.2 million.