Vista Land and Lifescapes Inc. on Monday said it will tap the offshore market as it re-opens its existing $200-million, 7.5-percent notes due 2027, which will come from the company’s drawdown of its medium-term notes program.
The property development arm of the Villar Group has mandated DBS Bank Ltd. and HSBC as joint global coordinators, joint lead managers and joint bookrunners, and Credit Suisse as joint lead manager and joint bookrunner, to arrange a series of fixed income investor calls, the company said.
The notes will be issued by its unit VLL International Inc.
“Proceeds from any notes issued may be used to refinance existing indebtedness, purchase, develop, construct or improve assets, property or equipment, and for general corporate purposes,” the company said in its disclosure.
Vista Land said its income in the first quarter fell 14 percent to P2.1 billion from last year’s P2.43 billion, mainly due to higher interest expense.
“Coming from 2020, our preliminary first quarter headline numbers this year are quite encouraging. The company will continue with its digital innovations to efficiently and to safely serve its clients and customers,” Manuel Paolo A. Villar, the company’s president and CEO said.
He said the company expects to report total revenues of approximately P8.7 billion for the period, or about 12 percent fall from last year’s P9.9 billion, with real estate revenues at approximately P6.3 billion representing a decrease of approximately 13 percent year-on-year, and leasing income estimated at P2 billion representing a decrease of approximately 9 percent last year.
The company said its reservation sales continued to rise in the first quarter, registering approximately P16.1 billion, or an estimated 4-percent increase from last year and an estimated 14-percent increase since the fourth quarter of 2020.
“We continue to navigate through these still challenging times brought about by the pandemic but with a more optimistic outlook this year especially as the vaccination rollout ramps up. In addition, indicators such as overseas Filipinos’ [OF] demand remains to be resilient with an upward trend as the host countries of our OFs are on their way to achieving herd immunity,” said Vista Land Chairman Manuel B. Villar Jr. “The projected growth of overseas Filipino remittances this year also bodes well for the Company since approximately 55 percent to 60 percent of our sales are overseas Filipino sales.”
The company said it will maintain its stance on minimal land acquisition thereby maximizing its existing land bank and will be conservative in terms of its leasing space expansion program. However, the company has the capacity to fast-track construction and to launch projects when opportunities present themselves.
Vista Land said it will continue to be proactive in its liability management policy. It is also looking at doing a real estate investment trust for its office space as a start.
In terms of addressing the pandemic, the company together with the rest of the Villar Group is set to vaccinate its workforce across the Philippines. It has recently rolled out VHealthy, the group-wide vaccination initiative for its employees. The Group has ordered vaccines from Moderna and Oxford-AstraZeneca for its existing workforce.