PUBLICLY-LISTED Cebu Holdings Inc. (CHI) remains bullish on Cebu and expects to double its revenue coming from its leasing and retail business.
In the next five years, the company will sustain its capital expenditure (capex) investment, said CHI president Aniceto Bisnar Jr., in a press conference.
Last year, the Ayala-led company earmarked a capex of P2.1 billion.
“In the next five years, we are investing about P10 billion continuously, or an average of P2 billion a year to fund ongoing constructions and development projects,” said Bisnar.
“Cebu’s economy and growth forecasts remain exciting and dynamic, with our prospects in retail, tourism, residential spaces, business process outsourcing (BPO) markets, and property leasing staying strong,” said Bisnar during the company’s annual stockholders’ meeting yesterday at the City Sports Club Cebu.
CHI is now present in five major estates—Cebu Business Park, Cebu IT Park, Gatewalk Central in partnership with the AboitizLand, Mactan in partnership with Taft Property Ventures Development Corp. and in South Road Properties in partnership with SM Prime Holdings.
According to Bisnar, masterplanning is underway for the 14-hectare property in Mactan Island, while the masterplan has been completed for the 26-hectare South Road Properties project. No further details were disclosed for the SRP project.
“Our market outlook remains upbeat, our risk and sustainability measures are solidly in place, and our forward drive and capacity to seize these opportunities are sharper than ever,” said Bisnar.
Projects
He disclosed that the company’s retail and office leasing inventory is set to double by 2020, with the opening of two new malls and multiple office towers in existing and new growth areas. Leasing inventory is expected to reach 288,743 square meters (sq.m) of retail space and 215,340 sq.m of office space. Residential and office units for sale will total over 7,800 units.
CHI ended 2016 with P2.7 billion in revenues-a mix of retail and office space leasing, residential lot and condominium sales, theater operations and interest, and other income. Its net income stood at P679.7 million while total assets grew to P19.6 billion.
Rental income rose 68 percent boosted the company’s revenue last year, with sales from residential lot and condo sales at 11 percent.
CHI subsidiary Cebu Property Ventures and Development Corp. (CPVDC) closed 2016 with P695 million in revenues and P213.6 million in net income, owing mostly to lease income from office buildings. CPVDC’s total assets grew to P5.5 billion.
Last year, its flagship estate, Cebu IT Park, saw 48,966 jobs or a 10 percent increase from the 2015 count. With the continuing demand for office space, Bisnar said buildup continues with 11 buildings still under construction, which will add over 276,000 sq.m of gross floor area within the next five years.
In 2016, CPVDC invested some P604.7 million, of which P180.7 million went to the continued development of existing projects, P175 million for investment in their affiliates and P249 million for new land acquisitions.
“In the next five years, we shall significantly grow our office portfolio and diversify our business lines to take advantage of market demand, while at the same time, managing our risks,” Bisnar concluded.