Billionaire Manny Villar‘s homebuilding crown jewel, Vista Land & Lifescapes, is weighing the sale of two non-core shopping malls to help cover a $420-million US-dollar bond due in July 2027, in what one credit research firm calls a “precarious” cash position for the country’s biggest homebuilder.
Why Vista Land needs the money
Vista Land said in a stock-exchange disclosure this week that it is evaluating ways to monetize selected non-core assets under its capital and liquidity management strategy, pointing to the July 2027 maturity of its $420-million bond as the obligation it must meet. Beyond asset sales, it listed operating cash flows, bank financing and capital-markets transactions as options it is considering.
The peso’s slide to record lows has made that dollar bill heavier. At around P62.70 to the dollar, the $420-million bond is now worth about P26.3 billion, and CreditSights, the Fitch Group research arm, said after meeting management that the developer has been spending more cash than it generates through 2027.
Which malls could be sold
In its independent assessment of Vista Land’s finances, CreditSights flagged a roughly P10-billion non-core mall in Mandaluyong that it believes is likely Starmall EDSA-Shaw, plus a southern Philippines property worth about P5 billion. Selling both could raise close to P15 billion, covering more than half of the peso-equivalent bond.
| Reported asset | Location | Estimated value |
|---|---|---|
| Non-core mall (likely Starmall EDSA-Shaw) | Mandaluyong City | About P10 billion |
| Property | Southern Philippines | About P5 billion |
| Combined potential sale | … | Up to about P15 billion |
Vista Land management told CreditSights that buyers have already shown interest, with some deals potentially closing this year or next. Even so, the researcher’s biggest worry is whether the group will actually sell parts of a business it has never parted with before: “VLL has not sold any of its malls, offices, and land bank to date.”
The other ways it can bridge the gap
CreditSights listed several funding levers Vista Land could pull beyond the mall sale:
- About P25.5 billion from selling dollar investments
- Around P22 billion in bank credit lines freed up after the PrimeWater deal
- Further financial backing from billionaire Manny Villar
- Selling mature malls to VistaREIT, which would keep the properties inside the Villar group, though occupancy levels could delay that route
Vista Land & Lifescapes, which also operates 45 malls and seven office buildings through its Vistamalls retail unit, says it is assessing strategic alternatives for its retail assets, including possible transactions involving VistaREIT depending on market conditions and valuations.
A wider Villar empire reshuffle
The potential mall sales come amid a broader restructuring across the Villar group, which has been closing stores and streamlining businesses after years of aggressive expansion around its property network. The family has already sold its PrimeWater utility business, and rival retailers have moved into locations once occupied by AllDay and AllHome outlets.
The pressure is not limited to the debt. Trading in Vista Land and other Villar-controlled firms, including VistaREIT, Vistamalls, AllDay Marts and AllHome, has been suspended over a failure to submit reportorial requirements, and the Securities and Exchange Commission earlier this year filed criminal complaints against Villar Land and top executives over alleged stock price manipulation and insider trading.
What the bond market is betting
Despite the strain, CreditSights kept a Buy recommendation on Vista Land’s 2027 and 2029 dollar bonds for investors willing to take on higher risk, arguing their depressed prices underestimate the company’s ability to raise the cash it needs. Vista Land also refinanced at least P12 billion in bank loans in the second quarter.
The read is straightforward: Vista Land faces a difficult refinancing job, but it controls enough malls, land, investments and family backing to get through 2027 if it can turn those assets into cash quickly enough.
