Contact Information

Cebu Holdings, Inc.
20/F Ayala Center Cebu Tower
Bohol Street, Cebu Business Park
Cebu City, Cebu 6000
Tel: (63 32) 888 3700

Cebu Business Park building projects eyed

Monday, May 3, 2004

Due to increasing demand for commercial, office spaces

Amid the growing demand for office spaces in Cebu, several lot owners at the Cebu Business Park has indicated plans for construction buildings, Cebu Holdings Inc. (CHI) president Rene Almendras said.

According to Almendras, some lot owners have proposed building projects, mostly commercial and office spaces.

However, he said, these buildings will be information to technology-enabled to be able to meet the requirements of IT-related companies such as call centers, business process outsourcing and medical transcription.

Efforts to attract call centers and other IT companies to Cebu have stymied by the lack of office space to accommodate new IT companies.

To address this concern, the Department of Trade and Industry (DTI) through the Board of Investments (BOI) encouraged building owners to look at the possibility of upgrading their existing buildings to accommodate IT investments.

The government also urged interested building officials to consider applying for accreditation by the Philippine Economic Zone Authority to have their buildings designated as an IT zone so that IT locators would avail of incentives.

He noted that Cebu has become attractive to those who would like to set up IT companies in the Philippines.

"People in the world has realized Cebu is an ideal IT destination," he said. However, he said, Cebu has to address some concerns to make the place more attractive to IT investments.

"We are not yet the perfect IT destination so we need to perfect that.  We need more local entrepreneurial participation," he pointed out.

He said there are many IT foreign investors who would like to partner with local entrepreneurs but the locals have not responded as yet.  Meanwhile, CHI has registered good financial performance for the year 2003.

"In 2003, the company nearly doubled its income in the previous year - from P46 million to P83 million at yearend," Almendras reported during the stockholders? meeting held Friday last week.

The company's consolidated revenues amounted to P538.3 million, vie percent higher than last year's figures, he said.

Almendras attributed the increase in revenues to commercial land sales, commercial operations, sales of sports club shares and the lease of eOffices of CHI's subsidiary Cebu Property Ventures and Development Corporation (CPVDC).

Commercial land sales at Cebu Business Park reached P120 million, generated from the sale of a commercial lot with an area of 4,800 square meters.

Ayala Center Cebu contributed P293.3 million, about 55 percent of CHI's total revenues.

This figure also showed an increase of five percent over the mall's 2002 revenues.

The company attributed the increase in Ayala Center's revenues to improved lease occupancy at 98 percent and higher rental rates.

Rentals generated from retail operations of P279.5 million account for the bulk (95 percent) of the commercial center's total revenues.

The new Ayala Food and Entertainment Center also helped boost the mall's performance.

Ayala Center Cebu has been undertaking renovations starting last year to meet changing customer needs, said Cristina Angan, head of CHI commercial group operations.

CHI's exclusive urban resort project City Sports Club Cebu contributed P23.5 million in revenues.  As of end 2003, a total of 967 shares were sold.

CPVDC's e-Office also generated P22.05 million in revenues, it was noted.

Cebu Holdings is an affiliate company of Ayala Land Inc. (which owns 47.26 percent of total shares).  Other partners include Santiago Land Development (15.45 percent), a wholly owned real estate subsidiary of the Bank of the Philippine Islands, First Metro Investment Corporation (10.04 percent and the public 27.25 percent).

The company owns and manages the Cebu Business Park, a 50-hectare business and commercial subdivision.