Vista Land goes abroad for fresh expansion funds

Villar firm considering US dollar bond offering

VILLAR FAMILY-led homebuilder Vista Land & Lifescapes plans to tap the offshore bond market to raise fresh funds for expansion.

Vista Land disclosed to the Philippine Stock Exchange yesterday that the company had been authorized by the board to explore various funding options, including a US dollar-denominated bond offering.

Proceeds will be used to bankroll expansion plans such as moving into commercial property development to boost recurring leasing income.

The management has yet to decide on the final size and terms of the offering, but market sources expect Vista Land to forge a $100 million to $150 million offshore bond deal.

Vista Land officials recently conducted an international roadshow to sound off the bond issue with the help of investment banks Morgan Stanley and UBS, other sources said.

Meanwhile, Vista Land declared a cash dividend equivalent to 20 percent of the property firm’s consolidated net income in 2009.

The dividend amount is P0.054 per share for stockholders as of September 30. Payment is set on October 26.

Vista Land chalked up a net income of P1.44 billion in the first six months, an increase of 40 percent from the P1.03 billion recorded in the same period last year.

The property group is targeting a record P20 billion in sales take-up for 2010.

The share price of Vista Land, which had been weighed down by political overhang, has more than doubled since the May presidential elections.

Based on yesterday’s closing price of P3.34 a share, it has a market capitalization of P28.35 billion.

Foreign brokerage house Credit Lyonnais Securities Asia-Pacific (CLSA) recently reiterated its ‘conviction buy’ rating on Vista Land shares. In a research report dated Sept. 8, CLSA’s property analyst said Vista could still have a 51 percent upside.

For details on Vista Land properties, please contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.

Source: Philippine Daily Inquirer, 20 September 2010

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