ROBINSONS LAND CORPORATION OFFICIAL WEBSITE

By Honey Madrilejos-Reyes
The Business Mirror
October 6, 2006

FRESH from a successful follow-on offering of shares Wednesday, Robinsons Land Corp. (RLC) said Thursday it would spend P15 billion over the next two years, to put up new shopping malls in various parts of the country and to expand existing ones.

In a press briefing, company vice chairman Lance Y. Gokongwei said the budget for fiscal 2007 would be around P7 billion. It would be increased to P8 billion in 2008.

Gokongwei said the proposed capital expenditure would be partly covered by the P5.23-billion proceeds RLC netted from the sale of primary shares. The company would also resort to borrowings in the latter part of 2008 to raise funds.

Up to 770,585,800 offer shares were sold to international investors, of which up to 450,000,000 were issued and offered by RLC by way of primary, or new, offer, while around 320,585,800 existing shares were offered by the selling shareholders such as JG Summit and two other units, as part of the secondary offer.

Around 40,550,400 secondary common shares, meanwhile, were sold to domestic investors at P12.00 a share.

RLC's stock price opened at P13 per share at Thursday's trading before closing at P14.

“It affirms the fact that the Philippine property development industry is back in full force,” said Gokongwei. “After a long down cycle, the industry is finally climbing to even greater heights led by the many listed property companies that have become prime beneficiaries of a stronger resurgent economy.”

The sale of additional shares has raised the public float, or shares owned by the public, in RLC to 40 percent from a mere 7 percent. The balance of 60 percent, on the other hand, remains with JG Summit.

The company said investors are attracted to the RLC shares given the general optimism towards the Philippine economy, the growth of business process outsourcing in the country and the continuing boom of the property market.

RLC is engaged in the development and operation of commercial real-estate projects principally shopping malls, high-rise office buildings and hotels as well as building of residential real-estate projects.