CEBU’S industrial and mixed-use estates continue to show steady activity despite rising costs and global uncertainties, supported by diversified developments and strong demand from key sectors, according to Rafael Fernandez de Mesa, president and chief executive officer of Aboitiz Economic Estates.
During an online briefing on Monday, April 27, 2026, Fernandez de Mesa said resilience in the company’s Cebu portfolio is anchored on a diversified mix of industrial, residential and commercial assets, alongside a growing stream of recurring income that cushions against economic cycles.
“We’ve been very intentional in managing inventory, especially with elevated construction costs,” he said, noting that the firm is prioritizing ready-for-occupancy residential units to generate immediate cash flow while limiting exposure to additional capital spending.
Cebu estates show steady demand
In Cebu, estate activity remains stable, with demand driven by core industries and evolving tenant profiles.
At the West Cebu Estate, shipbuilding and allied services continue to anchor growth. The company is undertaking a 40-hectare expansion in the area, which is already more than halfway sold, signaling sustained investor interest.
Meanwhile, Mactan Economic Zone 2 is nearing full occupancy, prompting a shift not in land expansion but in tenant mix. The estate is gradually attracting higher-value and future-oriented industries, reflecting its transition into a more mature and specialized ecosystem.
Despite global headwinds, Fernandez de Mesa said tenants in Cebu are not significantly scaling back, with estates continuing to support locator growth through stable, execution-ready environments.
“Our focus remains on providing reliable platforms where businesses can operate and expand with confidence despite external volatility,” he said.
The company’s integrated estate model — leveraging synergies within the broader Aboitiz Group — also provides greater visibility and control over key cost drivers such as power, water and infrastructure.
Fernandez de Mesa said this allowed them to better manage rising operating costs while maintaining service reliability across their Cebu estates.
Boosting Cebu’s role in FDI
Meanwhile, Fernandez de Mesa emphasized that attracting foreign direct investments (FDIs) increasingly depends on execution certainty rather than just land availability.
“Locators today want to move from decision to operations quickly and with minimal friction,” he said.
To address this, the company is building integrated ecosystems that combine infrastructure, utilities, mobility and estate management into a single platform. These are complemented by workforce housing, talent development initiatives and close coordination with the government to improve ease of doing business.
He said this approach strengthens Cebu’s competitiveness as an investment destination, particularly as global firms seek reliable and scalable locations outside traditional hubs. / KOC