Cebu Landmasters allots P12 billion for capital spending

CEBU. Cebu Landmasters Inc. Board of directors led by chairman and president Engr. Jose Soberano III (center) pose for posterity after the Annual Stockholders' Meeting at Marcopolo Plaza Hotel Tuesday, May 28, 2019. (Amper Campaña)
CEBU. Cebu Landmasters Inc. Board of directors led by chairman and president Engr. Jose Soberano III (center) pose for posterity after the Annual Stockholders' Meeting at Marcopolo Plaza Hotel Tuesday, May 28, 2019. (Amper Campaña)

CEBU Landmasters Inc. (CLI) is allotting P12 billion for its capital spending this year as it continues to roll out more projects in the residential, office, retail and tourism fronts in the Visayas and Mindanao.

CLI chairman and president Jose Soberano III said CLI has identified 29 new projects for this year, which will offer some 7,517 condominium units, convert 111 hectares of land into house and lot projects, and generate 816 hotel rooms.

These projects are expected to generate some P25 billion worth of real estate sales. That is more than double the P12 billion worth of sales launched in 2018, the CLI top official said.

“We continue to remain optimistic. Our confidence rests on the impressive performance of the country’s economy and continued demand in the property sector,” he said during CLI’s annual stockholders’ meeting Tuesday, May 28, 2019 at the Marco Polo Plaza Cebu.

Soberano noted that the country’s economy, which is growing between five and seven percent yearly, has been encouraging for property players like them in expanding their footprint across the country.

Besides beefing up its real estate portfolio, Soberano said the company is also eyeing to expand in new territories such as the cities of Ormoc, General Santos and Butuan.

Inspired by the exciting performance across the Visayas and Mindanao in 2018, Soberano said CLI has set its sights on becoming the top regional property player in the country by 2030.

“This new vision goes hand in hand with our growing presence and mastery in the region, while also recognizing that there is more work to be done,” he said.

There are over 58 CLI projects that are in various stages of development to date.

Of the total number of projects, 27 have been completed while 31 are in the various stages of construction and completion, while some are newly launched projects.

CLI is present in eight key cities in the Visayas and Mindanao.

“We will continue to strengthen our leadership in the Visayas and Mindanao market,” said Soberano. “There is so much to do here.”

CLI executive vice president and chief operating officer Jose Franco Soberano announced that CLI started turning over six major projects by the latter part of 2018.

These are Casa Mira Towers in Labangon, Cebu City, Base Line Premier in Cebu City, Base Line HQ in Cebu City, MesaVerte Residences Cagayan de Oro City, Casa Mira South in the City of Naga, Cebu, and Citadines Cebu City, the company’s first hospitality project.

“Our fast turnaround strategy embraces our customer-first approach. Your company always endeavors to achieve the highest customer satisfaction, and it understands that a timely and quality turnover are the ultimate measures of success,” said Jose Franco.

With CLI’s aggressive expansion, Jose Franco said each project they build translates to about 2,000 indirect jobs.

Moreover, the year 2018 proved to be another outstanding year for CLI, said Stephen Tan, the company’s chief finance officer.

CLI ended the year with a consolidated income of P2.17 billion, up by 72 percent year-on-year.

The company’s revenue went up by 72 percent to reach P6.76 billion, on the back of the robust construction progress and sales of new project launches.

Major contributors to the revenues were MesaVirre and MessaVerte from the mid-market Garden housing series, and Casa Mira South and Casa Mira Towers of the economic housing brand.

“In 2019, projects under joint ventures have notably contributed to the top line, driving further the revenue,” said Tan, referring to Latitude Corporate Center, 38 Park Avenue and Messa Tierra Garden Residences.

Tan said CLI is eyeing to increase its recurring income in the coming years by venturing into more hotel businesses, mixed-use projects and townships.

Despite an environment of rising interest in 2018, CLI floated P5 billion in corporate notes at competitive terms and rates after being rated AA with stable outlook by PhilRatings. Some P3 billion of the notes were issued before the end of 2018 to support the P10.2 billion capital expenditures spent for the year.

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