Cebu Holdings allots P13B for projects in next 5 years

An aerial view of Cebu Business Park, a former golf course that has been transformed by Cebu Holdings, Inc. into a 50-hectare masterplanned development that is now considered Cebu’s premier financial and business district. (CONTRIBUTED)

Ayala-led Cebu Holdings, Inc. (CHI) has earmarked more than P13 billion for its identified projects in Metro Cebu in the next five years.

This includes the P5.8 billion that has been set aside for capital expenditures this year, more than double the P2.7 billion spent last year, as well as the P500 million for the development of a portion of the 26-hectare lot acquired jointly by the Ayala Group and SM at the South Road Properties (SRP) in southern Cebu City, said CHI president Aniceto V. Bisnar, Jr.

During the company’s stockholders meeting yesterday, Bisnar said the company intended to continue on a high growth path until 2020.

The company reported a 16-percent compound annual growth rate in the last five years. Last year, net income went up 56 percent to P827 million.

EXPANSION

Bisnar said the company will continue to diversify its estates while pursuing expansion plans that include three new mixed-use developments, more residential units, and additional leasing income from new malls and office spaces.

CHI will launch this year a 17-hectare city center project in partnership with subsidiary Cebu Property Ventures and Development Corp. (CPVDC) and AboitizLand, Inc.

Bisnar, who is also CPVDC president, said the Mandaue project is a major milestone for CPVDC as it is the company’s first venture outside Cebu City.

“More than ever, the time is ripe for us to recalibrate our strategies for greater growth, increase our portfolio, and realize much higher values from our initial investments,” Bisnar said during the CPVDC stockholders meeting yesterday afternoon.

The project is envisioned to host another regional mall and residential condominium units, among others.

CHI is also completing the masterplan for a 13-hectare property on Mactan Island, which is envisioned to be a resort development that will further boost Cebu’s tourism industry.

Bisnar said they were also completing, together with parent Ayala Land, Inc. as well as SM Prime Holdings, Inc., the masterplan for a 26-hectare SRP lot that they won in a bidding in June last year.

SRP PROJECT

Of the 26 hectares, three hectares will be set aside for an arena that will be constructed by SM. The balance of 23 hectares will be split evenly between SM and the Ayala-CHI Group.

“This is our first venture in the southern part of Cebu City, as we strive to expand urban development to new areas in the province. We are currently in the stage of jointly masterplanning this development,” Bisnar said in his report to the stockholders.

“As we increase our landbank and develop spaces that generate substantial cash flow, we also increase our recurring income portfolio to enable the company to withstand changing market conditions,” he added.

Enrique B. Manuel, Jr., CHI chief finance officer, said in a press conference after the stockholders meeting that CHI and Ayala Land have each allotted P500 million for the horizontal development of the property until 2018.

He also said the P13 billion that CHI is setting aside for the next five years is part of the P25 billion that parent company Ayala Land announced for Cebu projects in the same period.

BUILD-UP

At the 50-hectare Cebu Business Park (CBP), where 38 buildings have been built, Bisnar said 11 more buildings are under construction.

Among the new buildings are Ayala Center Cebu Tower, an information technology-business process outsourcing (IT-BPO) building on top of the mall; Tech Tower, which offers office spaces; BPI Cebu Corporate Center by Alveo Land, which offers professional work spaces for ownership; and The

Alcoves by Ayala Land Premier, which offers 480 residential condominium units also on top of the mall.

Upon completion, the total built-up area at CBP will reach 824,040 square meters of gross floor area for office, retail and residential uses.

At the 27-hectare Cebu IT Park, flagship development of CPVDC, there are 23 buildings.

Nine more are under construction, including the fourth eBloc Tower and the Central Bloc which will feature an Ayala mall, two BPO office towers and a Seda Hotel.

CHI ended 2015 with an all-time-high revenue of P3.7 billion, 63 percent higher than in 2014. Revenues were largely derived from commercial lots sales, lease income from Ayala Center Cebu and eBloc Towers, and sale of residential lots and condominium units.

CHI declared cash dividend of P0.12 per share to all shareholders in December last year. CHI shares ended flat at P5.20 apiece yesterday.