RLC, Home Funding sign deal
Honey Madrilejos-Reyes
Business Mirror
February 19, 2008

GOKONGWEI led Robinsons Land Corp. (RLC) has entered into a receivables assignment pact with Home Funding Inc. to give homebuyers added financing options.

Home Funding is the first special purpose company established under the Securitization Act of 2004 to focus on housing receivables.

In a statement, Robinsons Land said the agreement gives homebuyers another option to long-term finance for their condominium purchase.

RLC said the receivables would be assigned in several tranches, and subject to conditions that include approval from the Securities and Exchange Commission (SEC).

Home Funding chairman Aloysius Colayco said the partnership constitutes a solution to the needs of homebuyers.

RLC has agreed to assign and sell P1.5 billion worth of receivables to Home Funding. The receivables, it explained, include contracts to sell signed together with clients.

Last month, the company reported a 42 percent jump to P2.44 billion in net profit for fiscal year ending September on the back of higher sales. Its gross revenues also increased 29 percent to P8.99 billion.

“All business units performed remarkably well. Our drive to build our brand and be responsive to market demands made our performance possible. The strategic initiatives and expansion programs we had pursued in recent years continue to bear fruit,” said president and chief operating officer Frederick D. Go.

The previous year saw record sales and recurring income achieved by the company’s various operations as well as significant innovations and opening of new markets, which allowed it to maintain its status as one of the major real-estate developers.

RLC’s commercial centers division accounted for 39-percent share in gross revenues with P3.54 billion compared with the previous year’s P3.28 billion. Revenues from shopping malls were driven by flagship Robinsons Galleria and Robinsons Place Manila. The performance of Pioneer, Bacolod and Novaliches malls contributed to the division’s 7.8-percent rise in revenue.

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