By Bernie Cahiles-Magkilat
Torre Lorenzo Development Corp. (TLDC), the country’s lone property developer that focuses on student condominiums and leaning towards leisure project developments, is planning to unload 30 percent of its shareholdings via an initial public offering in three years.
TLDC Chief Finance Officer Emmanuel A. Rapadas said they are planning to conduct the IPO in 2021 to better establish a firmer company track record and on hopes of better stock market conditions by then.
“We believe that our sustained growth and profitability and our 10 years of successful history will be a strong story for us,” said Rapadas.
The IPO proceeds will be used to pay company debts, which he said is below the normal threshold of 3:1 which means every P3 of debt for every P1 equity.
At present, TLDC is funding its projects through a mix of borrowings and reinvestment of earnings. “This is our formula, we are borrowing money to build projects so via the IPO we hope to eliminate majority of our debts.” He said.
In 2017, TLDC got a P2 equity infusion from private shareholders. The Lorenzo family is still the largest shareholders of TLDC.
So far, TLDC has total of 17 projects, six of which were already completed — Torre Lorenzo 1, 2 Torre Lorenzo, Torre Sur, Torre Central, Cuidades Business Park and Lubi Plantation Beach Club.
Ongoing projects include 3 Torre Lorenzo, Torre Lorenzo Malate, Tierra Lorenzo Lipa Tower 2, Dusit Princess Lipa, Tierra Lorenzo San Fernando, Dusit Thani Residence Davao, dusitD2 Davao, Dusit Thani Resort at Lubi Plantation and Ciudades Town Center.
The company will launch Torre Lorenzo Katipunan, a student’s residence tower near the universities in the Quezon City area, and Tierra Lorenzo Lipa Tower 1, which is 56 percent sold.
The company is now preoccupied with its P2.4-billion investment for a three-tower hotel and condominium project within the more than a hectare Tierra Lorenzo Lipa property development in Lipa, Batangas.
Rapadas said the new development is being funded through P1.6 billion through project finance facility from local banks and the balance is internal equity.
Rapadas said the three towers will share common podium. The first tower called Anilao will be the condominum tower to be completed by end of the first quarter of next year. At least 56 percent of the 263 units have been sold already. It is now selling at P90,000 per square meter.
Development of the second tower or the residences will follow suit next year. The two tower residences will be managed under the Lorenzo Property Management Corp.
The third tower a hotel called Dusit Princess Lipa, the first internationally branded hotel in the province to be run by Dusit Thani Group, a Thai hotel chain operator. The 8-story hotel will have 152 rooms available by 2021.