CHI sets aside P18B in new investments-A A +A
Tuesday, April 8, 2014
AYALA-led Cebu Holdings Inc. (CHI) yesterday announced P18 billion in new investments in the next three years to fund existing projects, including the two joint ventures with the Taft Property Development Corp. (TPVDC) and Aboitizland Inc.
“We are investing a little bit more than what we have done in the past to P6 billion a year. This is in addition to more than P20 billion we have committed in the past years. We are expecting that over the next three years we will be anticipating about P18 billion in new investments,” CHI chairman Antonino Aquino said in a press conference shortly after CHI’s Annual Stockholders’ Meeting at the Cebu City Marriott Hotel.
“The intention is to continue increasing the level of investment in the future and increase even beyond what we have done in the past,” said Aquino, the outgoing president of AyalaLand Inc.
One of the major projects this year, according to Aquino, is the planned redevelopment of Cebu IT Park.
CHI president Francis Monera said they are finalizing the master plan for a mixed-use superblock, which will include a regional mall, office buildings and a hotel,
strategically designed to complement the 24/7 community in the area, as well as
enhance the pedestrian experience within the park.
Aquino described the new project as being similar to the Bonifacio High Street in Taguig, which has a vibrant retail playground. The mixed-use superblock is slated to break ground this October.
Other projects this year include the construction of Amaia Steps Mandaue and the two joint venture projects with Cebu-based developers on mixed-use, master-planned
communities in Mandaue and Mactan. These two projects are still in the planning stage.
Amaia Steps Mandaue is the first mid-rise project of the Amaia brand in Cebu. It is a two-tower residential project with a total of 576 units priced from P1 million to P3 million.
The 15-hectare city center in Subangdaku, Mandaue in partnership with the Aboitizland Inc. will be known as a business district in Mandaue, similar to Cebu IT Park and Cebu Business Park. It will have residential, commercial and office components. CHI and its affiliate Cebu Property Ventures and Development Corp. (CPVDC) acquired 10 percent and
five percent stakes for this project.
The proposed 12-hectare Mactan project in partnership with the TPVDC, on the other hand, is envisioned to become an integrated development, with residential, retail and hotel components. The project will break ground this year.
CHI closed 2013 with a net income of P501.1 million, 13 percent higher in 2012 amid the devastating impacts of the earthquake and super typhoon Yolanda at the latter part of the year.
Monera said the “all-time high net income was a result of strong performance across all businesses.”
Its consolidated revenues reached P2.2 billion, up by 33 percent.
Half of the revenues generated were from the leasing business. Real estate sales brought in 28 percent, while the rest was distributed by the firm’s equity in affiliates, interest and other income, and theater income.
City Sports Club Cebu contributed P2.8 million in revenues, higher by almost four times its revenue in 2012. Cebu City Marriott Hotel, on the other hand, contributed P12.9 million.
On the residential business front, Monera reported that the construction of 1016 Residences and Park Point Residences under the Ayala Land Premier brand, and Alveo’s Sedona Park and the first Solinea tower are well underway. The Avida Towers Cebu is also set for turnover within the year.
With the continued take-up of units, the company launched last year the second tower of Alveo’s Solinea, as well as the second tower at Avida Towers Riala.
“These residential brands bring in a total of 3,932 units upon completion, making us the biggest real estate group offering the most number of units across a wide range of market segments in Cebu,” said Monera.
CPVDC, the developer of Cebu IT Park, generated a net income of P136.8 million. Its consolidated revenue reached P460.8 million.
Monera said more than half of the consolidated revenues of CPVDC came from the leasing income from retail and office spaces.
“The last four years, have seen accelerated growth within the parks. The current build-up almost triples the total gross floor area (GFA) generated in the company’s first 20 years,” said Monera.
Cebu Park District’s GFA stood at 421,000 square meters while Cebu IT Park’s GFA is at 215,000 sq.m.
Published in the Sun.Star Cebu newspaper on April 09, 2014.