CEBU Landmasters Inc. (CLI), a Cebu property developer that is seeking to list on the Philippine Stock Exchange (PSE), said it is considering building more projects in the tourism sector to diversify its product offerings.
Apart from some hotel developments, CLI president and chief executive officer Jose Soberano III said the company is also interested in resorts development and is looking for opportunities in this sector.
“That’s what we’re eyeing. We are looking at one (site) in Mactan, so we’re also gearing up for that,” Soberano said.
He said the company is focused on “more homey” developments in the property sector than risky ones like casinos.
CLI is currently developing The Citadines in the Base Line Center, a 180-room hotel operated in partnership with international hotel giant Ascott Limited. The hotel development is expected to be completed by 2019.
It plans to build two more hotels in Cebu to support strong tourism growth, including a 250-room hotel in Mactan.
These plans are in line with its P12-billion capital spending program in the next two years as it aims to become the preferred developer in the Visayas and Mindanao regions.
Franco Soberano, CLI senior vice president and chief operating officer, said P9 billion of the capex will fund ongoing projects while P3 billion will be used for land acquisition. The capex program will be funded by proceeds from a planned P3.8-billion initial public offering (IPO) and internally generated cash.
CLI plans to sell 580 million common shares priced up to P6.56 each in its IPO, which is expected to be conducted sometime in May 2017.
It is still in the process of securing regulatory approvals for the IPO but it has appointed BDO Capital & Investment Corp. as the sole issue manager, and BPI Capital Corp. as joint bookrunner with BDO Capital.
“We’re setting our sights on the VisMin region where we have the capacity to win, where there is high demand for value and quality developments, and where there are still opportunities for significant growth,” Soberano said.
At present, Soberano said CLI is currently working on 28 developments, offering 11,141 units. Some 53 percent of the ongoing projects are vertical condominium developments, 27 percent are horizontal housing units, 17 percent are commercial office buildings, and 2 percent are hotels.
CLI reported P702 million net income and P2.18 billion revenues in 2016.
Established in 2003, CLI is a Cebu-based property developer having projects within the Metro Cebu residential condominium arena. Some of its notable projects are the Mivesa Garden Residences, Midori, and Velmiro for residential; 38-storey 38 Park Avenue in Cebu IT Park for office buildings, and the 180-room The Citadines in the Base Line Center for hotels.
BY KRISTYN NIKA M. LAZO | The Manila Times | MARCH 2, 2017