Cebu Landmasters reallots part of IPO proceeds

Property developer Cebu Landmasters Inc. (CLI) is reallocating portions of the P2.9 billion in proceeds from its initial public offering (IPO) last year to other land acquisitions.

In a regulatory filing submitted by CLI Investor Relations manager Clarrissa Mae Cabalda, the company said its board agreed to reallocate P378,825,400 to other land acquisitions and investments in the Visayas and Mindanao.

There was inordinate time to close the acquisition of lands in Jaro and Mactan proposed by the company in its IPO prospectus.

“A reallocation is recommended if CLI were to remain on-schedule in disbursing all IPO proceeds within the first-half of 2018,” the company said.

Of the P60 million allotted to buy a property in Jaro, only P51,000 has been used for technical assessment.

A possible hotel project in Mactan, to which P400 million was programmed, around P100 million was reallocated during the third quarter of 2017 to investments in joint ventures.

“CLI managed to acquire those in Cagayan de Oro and Bogo as planned, with a realized savings of P12,937,485 and P5,938,915, respectively,” it said.

The company allocated P150 million and P30 million to the buy land in Cagayan de Oro and Bogo City. —VDS, GMA News