By VG Cabuag
DMCI Holdings Inc. on Monday said it filed for an application before the Securities and Exchange Commission for its housing unit to sell fixed-rate retail bonds of up to P1 billion.
The said paper, to be called DMCI Homes Saver Bonds, will have an initial amount of P500 million.
“Proceeds of the offer will be used by the company for working capital and other general corporate purposes,” the company said.
The mid-segment real-estate developer said its income may reach P3.6 billion this year from sales of five of its projects that will be launched this year.
The company said the figure is an 11-percent improvement from last year’s P3.24 billion. Sales and reservations for this year are expected to reach P22 billion from last year’s P20 billion, the company said.
The projects to be launched include Ivorywood and Maple Place in Taguig, Bristle Ridge in Baguio, Valenia Residences in Mandaluyong and Lumiere Residences North in Pasig, the company said.
It has 16 other projects in different stages of construction.
For the year, DMCI Homes is allocating P5 billion for land acquisition. Development costs are expected to reach P6 billion to P7 billion, it said.
Since its establishment in 1999, DMCI Homes has launched 56 projects, which are condominium units in mid-rise and high-rise developments across Metro Manila, within 5 kilometers of city centers.
The property firm contributed some 11 percent in earnings to parent firm DMCI Holdings, a company known for its construction projects.
For the first quarter, DMCI Homes reported a net income growth of 11 percent, to P845 million from last year’s P762 million. The company said it recognized revenues from completed high-rise projects in the first quarter.
Excluding the effect of a gain on sale of undeveloped lot last year, the real-estate firm’s net income actually rose by 77 percent during the said period.