AYALA Land’s (ALI) property units in Cebu will continue to grow their respective companies despite the impending merger which is expected to happen within the year.
Cebu Holdings Inc. (CHI) and its subsidiary Cebu Property Ventures Development Corp. (CPVDC) both recorded double-digit growth in terms of revenue and net income in 2017.
In his report during CHI’s annual stockholders’ meeting last Tuesday afternoon, CHI President Aniceto Bisnar Jr. said the firm’s revenues increased by 14 percent to P3.1 billion in the past year.
At the same time, their net income also exceeded that of 2016 by 11 percent to P753.4 million.
On the other hand, Bisnar, who is also the president of CPVDC, said the subsidiary company’s revenues also grew by 16 percent to P803 million in 2017 while their net income increased by 15 percent to P247 million compared to 2016.
“We are setting up the platform to establish new operational frameworks, starting with the company’s planned merger with its subsidiary, CPVDC. This will increase our ability to move farther and faster as we respond to an ever-changing market,” Bisnar said in his speech.
“We are optimistic that with these advancements, CHI is well-positioned for growth to deliver better value in the years to come,” he added.
During the stockholders’ meeting, the planned merger of CHI and CPVDC was approved. It will take two to three more months for the publicly listed companies to complete the process which will include approvals from different government agencies.
CHI will become the surviving entity after the merger.
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Bisnar said the firm’s property development and commercial leasing had remained robust as they continued to enhance their existing estates.
At the Cebu Business Park (CBP), Ayala Center Cebu continues to be a strong revenue driver for the company with an average daily foot traffic of over 105,000. Merchant sales have continued to increase while the mall also enjoys a 97 percent occupancy rate, he said.
In 2017, CHI has also completed its Tech Tower office building along Camiguin Road in the CBP. This adds over 16,000 square meters more to their leasing portfolio.
CHI also finished its BPI Cebu Corporate Center through Solinea Inc. which is a partnership with Alveo Land. The building, which is located along Luzon Ave., offers 168 units of office space and is already 63 percent sold out.
For CPVDC, Bisnar said their office leasing remains strong with their four eBloc Towers, which comprise over 80,600 square meters of office space in their portfolio.
The four towers collectively hit P559 million in revenues for the subsidiary firm which comprises 77 percent of their total revenue.
“Our eBloc Towers area is already fully occupied, while The Walk’s lease occupancy stands at near-saturation with 96 percent. This shows a continuing strong demand for the spaces we develop,” he said in his speech.
To further diversify its portfolio, CPVDC is currently constructing the Central Bloc which is a two-hectare complex in the Cebu IT Park. This stacked development will have a regional mall which is expected to open in the first half of 2019.
It will also include two new Business Process Outsourcing (BPO) towers and a 214-room Seda Hotel which are targeted to be done in the next two to three years.
Upcoming dev’ts
Bisnar also reported their other developments which are still ongoing including Gatewalk Central, which is a mixed-use estate in Barangay Subangdaku, Mandaue City. The project was launched in 2016 and is currently under construction.
Land development will be completed by the end of this year while the Ayala mall in this development is set to open in 2021.
Bisnar also reported that over 91,000 jobs were generated by companies within the Cebu Business Park and Cebu IT Park.