CEBU Landmasters Inc., a real-estate development company led by the Soberano family, said it will reallocate portions of the proceeds of its initial public offering (IPO) to a series of joint-venture agreements intended for the purchase of lands and construction of condominium buildings.
The company said it will use P120 million of the proceeds to Yuson Excellence Soberano Inc. instead of using it to purchase the land for its Davao residential project.
Yuson Excellence will instead purchase that land, it said.
“This joint venture was, likewise, disclosed in the prospectus as a Cebu Landmasters affiliate and is the developer of Mesa Tierra Garden Residences, launched in March 2017. It is scheduled to begin construction in July,” the company said in its disclosure to the Philippine Stock Exchange.
About P300 million originally planned for the possession of land for a Davao mixed-use project will now be invested in a joint-venture project with the landowners.
“This new joint venture shall then undertake the project with Cebu Landmasters as developer and project manager. Currently, the project is in the planning stage and is tentatively targeted for launch in fourth quarter of 2017,” it said.
Only P50 million of the P180 million worth of land will be used for the proposed for a residential-condominium project in Guadalupe, Cebu City, after landowners decided to take their balance to be paid in the form of condominium units.
The remaining P130 million will now be utilized to fund the construction of the condominium towers or to purchase another land for future project, the company said.