Cebu Holdings to invest in more estate development, leasing portfolio in next five years
CEBU CITY— Cebu Holdings Inc. is planning to invest in additional real estate development and increase its leasing portfolio in the next five years.
CHI president Aniceto Bisnar Jr. made the announcement during the annual stockholders meeting held virtually for the first time Tuesday morning, April 14, 2020.
“CHI will continue to invest more on properties and leasing projects, a strategy that has contributed massively to the rise in the company’s consolidated assets,” Bisnar said.
The company’s projects in the pipeline will bring in an additional 77,000 square meters of office and almost 63,000 square meters of retail space. This will bring CHI’s portfolio up to over 473,000 square meters of total leasable space in the next five years.
CHI’s projects in key areas in Metro Cebu are also under construction. These include Gatewalk Central with Aboitizland in Mandaue City, Seagrove with Taft Properties in Lapu-Lapu City, and the 26-hectare development at the South Road Properties in partnership with SM Prime Holdings, Inc.
“These new estates are in key locations in Metro Cebu to catalyze inclusive growth with groundbreaking developments. As we have done in the past 30 years, we aim to transform land and help shape Cebu’s economic and social landscapes to make a life-changing impact on the community,” Bisnar said.
Bisnar also highlighted the CHI gains in its revenue and net income for the year 2019.
The company’s 2019 revenue reached P4.8 billion, 29 percent higher than the previous year. More than half of revenues came from its leasing portfolio, which is composed of malls and office buildings.
On the other hand, its net income by yearend 2019 nearly doubled at 93 percent from P857 million in 2018 to P1.7 billion, the first time its net income breached the billion-peso level.
CHI, an Ayala Land subsidiary, is the developer of Cebu Business Park and Cebu IT Park. Its projects include Ayala Center Cebu and the newly-opened AyalaMalls Central Bloc, as well as the eBloc Towers which house major BPO and IT investors in Cebu.
In 2019, CHI spent P1.62 billion on capital expenditures to develop new projects and enhance activities of its existing projects.
Its projects include the 45,000-square meter AyalaMalls Central Bloc, launched in December of 2019. On top of the mall is the 214-room Seda Central Bloc Cebu, which soft opened last February. Two BPO office buildings with a total of 72,000 square meters of GLA will also be located within the two-hectare stacked superblock.
CHI’s ongoing construction projects include the co-living spaces called The Flats at Cebu Business Park and Cebu IT Park. Upon completion in 2022, these will offer 852 affordable co-living units for lease at strategic locations within these major business districts.
On the other hand, CHI has implemented measures to address the situation under the enhanced community quarantine.
These include continued wages for the company’s employees, rent relief for retail merchants affected by the malls’ temporary closure, and enhanced security and sanitation within its properties.
CHI is also tapping seamstresses from a neighboring barangay to make PPEs to donate to local hospitals, in coordination with the group, #SOSCebu. The seed money for this initiative comes from voluntary donations from CHI employees.
“We are confident that we have systems in place to quickly respond to these changes, and strong financial fundamentals as well to sustain the business through this extended disruption. We remain hopeful that the situation will normalize by 2021, and we are ready to get back in stride as soon as possible,” Bisnar said.
“We have before us the opportunity not only for growth, but also to make renewal possible and to offer hope, for all of the communities we serve,” he added. /rcg
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