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

CHI eyeing partnerships for future Cebu projects

Tuesday, April 19, 2016

Apart from the P13 billion capital expenditure allocated for projects already mapped out for the next five years, Ayala-led Cebu Holdings Inc., is also actively looking for possible partnerships to boost its project inventories in Cebu.

CHI president Aniceto V. Bisnar, Jr., reported during the Annual Stockholders Meeting yesterday, that the company’s revenue grew by 63 percent in 2015.

"I am pleased to report that our revenue by the end of 2015 was at P3.7 billion, 63 percent higher than 2014. This is largely from the lease income of our retail and office businesses, as well as the sale of commercial lots to related parties and meant for development," Bisnar told stakeholders yesterday.

Fueled by the over-all market and economic vibrancy with promising outlook, Bisnar said that CHI is focusing on building and developing its ongoing projects, including big ticket investments in partnership with other conglomerates like SM Holdings (SRP project), Aboitiz Group (Mandaue integrated development), and the Metro Gaisano Group (Mactan leisure and commercial project).

The publicly-listed CHI also announced that it is on constant lookout for possible partnerships within Cebu to expand its foothold in the real estate development here, thereby sustaining its leadership in the sector.

According to Bisnar, the company will not limit its expenditure to the projected P13 billion in the next five years, as it is also anticipating "hard-to-resist" (joint venture) offers with Cebuano land-owners along the way.

"We have been receiving good partnership offers from several land-owners in Cebu," Bisnar said hinting that the company's interest to develop more projects, other than what has been announced is possible.

Last year, the company spent P2.7 billion as capital expenditure. This was spent for the continuing construction of new projects, investment in subsidiaries and affiliates, and aggressive land banking.

As a result, the company's total assets has grown to P19.7 billion, a 20 percent increase from the previous year.

In the last five years, the company has been growing in the 16 percent average annual growth rate. Bisnar said it is seen to continue growing in the same or higher growth part at least until 2020.

CHI is the developer of the 60-hectare Cebu Business Park, and the mother company of Cebu Property Ventures Development Corporation (CPVDC), the developer of 24-hectare Cebu IT Park.

As build-up continues with its existing estates, the company has closed deals with counterpart conglomerates like SM Prime Holdings, Aboitiz Group and Metro Gaisano Group to seize opportunities for expansion in Cebu.

Together with Aboitiz Group, CHI will soon launch the 17-hectare city center project located in Subangdaku, Mandaue within this year.

Meanwhile, the company’s joint venture project with SM Prime Holdings, which is its first venture at the South Road Properties (SRP), will allow CHI together with its mother company Ayala Land Inc. to co-develop a 26-hectare lot with SM Group.

Likewise, CHI and Metro Gaisano Group  is completing the masterplan of the 13-hectare property in Mactan, which is designed to further boost Cebu's tourism industry.

"The company continued on its steady growth in 2015, against the backdrop of a strong Philippine economy. We continued to capitalize on the dynamic market as we seek opportunities to grow the business even further," added Bisnar in his report to stockholders. (FREEMAN)