Stock News 2012: Rockwell Land to raise P7 billion via debt

Official seal of City of Taguig (Photo credit: Wikipedia)Lopez-led Rockwell Land Corp. plans to raise as much as P7 billion either through debt or equity to bolster cash reserves.

Rockwell president Nestor Padilla said the company is in discussions with banks and investment banks to “help put together a more realistic fund-raising program” to better prepare them for emerging opportunities in the industry.

“We’re looking at raising between P5 billion and P7 billion either through debt or equity...It actually depends on market conditions. The equity market has not been that bullish lately so we’ll see,” Padilla said.

The company wants to shore up its land bank to sustain its development pipeline for the next five years. It plans to diversify into new geographical areas to take advantage of robust demand for real estate.

“There are a lot of opportunities in Metro Manila and provincial areas. We’re hoping we can close some deals within the year,” Padilla said.

Continuing its tradition of building innovative and world-class properties, Rockwell is looking at branching out into Cebu and Davao to develop projects catering to the upper mid-market.

Rockwell is one of seven companies that are vying for the 74-hectare state property within the Food Terminal Inc. complex in Taguig City. The bidding has been rescheduled to Aug. 14 from Aug. 8 to give bidders more time to study additional information on the property.

The company aims to double its projected P1.1 billion earnings this year in two years or by 2014 on the back of new product launches.

Rockwell currently has 90,000 square meters of space for lease and expects this figure to double by 2014 and triple by 2016.

In the first half of the year, Rockwell reported a net income of P439.7 million on revenues of P2.5 billion. Sales take up jumped by 70 percent to P4.1 billion.

Established in 1995, Rockwell transformed a former thermal power plant into a high-end living environment now known as the Rockwell Center. Sitting on a 15.5 hectare site in Makati City, the company’s flagship project Rockwell Center now comprises five high-rise residential towers, a sports and leisure club, office buildings, a lifestyle shopping center, and a graduate school of law.

http://www.philstar.com/Article.aspx?articleId=835038&publicationSubCategoryId=66

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Stock News 2012: SMC sells Rockwell Land shares to Lopez

Rockwell Center (Photo credit: Wikipedia)
In a disclosure to the Philippine Stock Exchange, FPHC said it purchased SMC’s 681.646 million shares in Rockwell or around 11.1 percent of the newly-listed property firm’s outstanding capital, at P2.01 each share.

The purchase effectively hikes FPHC’s stake in Rockwell to about 87 percent from 76 percent.

The shares will be crossed at the local bourse’s facilities upon its approval of the special block sale.

FPHC said the transaction “serves to further consolidate FPHC’s ownership in Rockwell Land, its flagship for residential and commercial real property development.”

The sale follows FPHC’s purchase of Metro Pacific Investment Corp. and PLDT Communications & Energy Ventures’ combined 25 percent stake or 11.52 billion common shares in Rockwell at the same price for a total consideration of P3.06 billion.

When Manila Electric Co. declared as property dividend its 51 percent stake in Rockwell, shareholders of Meralco including Beacon and SMC, received such shares in the property firm.

SMC opted to divest its shareholdings in Rockwell since it conducts real estate business through its unit San Miguel Properties Inc.

Rockwell, which caters to the high-end segment of the market, listed by way of introduction or without undertaking an initial public offering.

http://www.philstar.com/Article.aspx?articleId=828169&publicationSubCategoryId=66

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Stock News 2012: Metro Pacific divests Rockwell Land stocks

Photo of Manny (Photo credit: Wikipedia)
The Metro Pacific Group of business titan Manuel V. Pangilinan has divested in upscale property developer Rockwell Land Corp., which is not part of the conglomerate’s core business.

In a joint statement to securities regulators yesterday, Metro Pacific Investments Corp. (MPIC) and First Philippine Holdings Corp. (FPHC) said Beacon Electric Asset Holdings Inc. has transferred around 1.5 billion shares in Rockwell worth roughly P3.1 billion to Lopez-owned FPHC and FPHC Pension Fund.

“Beacon transferred to FPHC 1.3 billion shares, as additional consideration for the 74.7 million Manila Electric Co. (Meralco) common shares acquired by Beacon from FPHC pursuant to the exercise of a call option on such shares on March 30, 2010,” the companies said.

“The consideration of the transfer of the 1.3 billion shares to FPHC is P2.01 per share or a total consideration of P2.613 billion,” they added.

The shares were crossed yesterday at the Philippine Stock Exchange.

Beacon secured a stake in Rockwell after Meralco divested its 51 percent stake in Rockwell by declaring it as property dividends. It resulted in FPHC owning a 52-percent stake in the high-end property firm.

Beacon, equally is owned by MPIC and PLDT Communication and Energy Ventures Inc., also transferred 84.546 million shares worth P169.938 million to FPHC as instructed by First Philippine Utilities Corp. (FPUC).

FPUC, a subsidiary of FPHC, retained its rights over the shares despite the MPIC group’s purchase of 30 million Meralco common shares, Beacon said.

Furthermore, Beacon sold 52.787 million additional Rockwell shares to FPHC valued at P2.01 apiece or a total of P106.1 million.

In 2009, FPHC sold 223 million Meralco shares worth P20.07 billion to the Pangilinan-led group. The Lopez-led holding firm sold an additional 74.7 million Meralco shares, or 6.6 percent of Meralco, in March 2010 for P22.41 billion.

Lastly, Beacon sold 87.953 million shares to FPH Pension Fund for P2.01 apiece or a total consideration of P176.787 million.

MPIC unloaded its shares in Rockwell as the company is not a core business of the conglomerate. Specifically, MPIC is into toll roads (Metro Pacific Tollways Corp.), power distribution (Meralco), water utility (Maynilad Water Services Inc.) and hospitals.

In May, Rockwell listed 6.23 billion common shares in the local bourse by way of introduction as a result of a Meralco’s property dividend.

Rockwell earned P915 million last year, up 14 percent from P801 million a year earlier on the back of a 26 percent jump in revenues to P6.2 billion. Revenue growth was driven by residential sales due to higher booking and construction completion in 2011 from ongoing projects.

Rockwell is looking to breach the P1 billion mark in terms of net income this year. Revenues are forecast to grow to P7.4 billion, an increase of 20 percent from the year before.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=821974

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