FOLLOWING its announcement of an initial public offering (IPO) this May, Cebu Landmasters Inc. (CLI) is gearing up for a stronger presence in the Visayas and Mindanao.
Jose Soberano III, CLI president and chief executive officer, said the company intends to expand in Iloilo, Dumaguete, and Bacolod in the Visayas and Cagayan de Oro City and Davao City in Mindanao.
“My goal is to become the preferred real estate company in the Visayas and Mindanao by 2020. But we hope to go further than that,” said Soberano in an interview at the sidelines of the blessing of the clubhouse of Velmiro Heights, a mid-market subdivision in the town of Minglanilla.
By May this year, CLI said, it plans to raise as much as P3.8 billion from its IPO. CLI, Soberano pointed out, is the first real estate developer from Cebu to apply for an IPO, and he hopes to inspire other Cebu companies to go public as well.
Part of the plan is to sell 505 million common shares with an overallotment option of 75 million shares at a price per share of up to P6.56. This will bring into public hands around 34 percent of the company’s total equity.
Ready to diversify
CLI has tapped BDO Capital as sole issue manager, and as joint lead underwriter and joint bookrunner with BPI Capital.
Soberano said that CLI’s current portfolio is strongest in the mid-market residential segment, but it is also expanding its premier-market projects. Those include the mixed-use 38 Park Avenue in Cebu IT Park, a consortium with five property players, slated to be launched on March 9.
He said he also intends to diversify the company’s projects to include expanding office spaces as well as hospitality and commercial developments.
In January, Soberano said that CLI will be investing P12 billion over the next three to five years for its projects in the Visayas and Mindanao. At present, the developer has 25 projects where more than 80 percent is classified as residential developments, 13 percent being office spaces, and the rest in hotel developments.
The company said the plan is to have a balanced mix of residential and commercial projects.
Some of the company’s brands include Velmiro Heights, a mid-to-high subdivision project in the town of Minglanilla in Cebu, which is also slated to be launched in Cagayan de Oro and Iloilo within the year.
By JEANDIE O. GALOLO | Sun Star Cebu | February 27, 2017