PROPERTY developer Cebu Landmasters Inc. (CLI) bared on Wednesday the full utilization of the P2.15-billion capitalization it raised from the sale of over 400 million shares it initially offered to public investors in the local bourse last year.
In a disclosure with the Philippine Stock Exchange, the Visayas and Mindanao (VisMin)-based real-estate firm said around 70 percent of the funds were used for landbanking purposes to boost growth through expansion in new areas where it now builds various development projects.
“Cebu Landmasters is committed to the fast turnaround strategy of the company,” said Jose Soberano III, CLI president and CEO.
On June 2, 2017, CLI was listed in the Philippine Stock Exchange as it offered a total of 430 million shares at P5 apiece.
Following the initial public offering (IPO), the company bought 767,917 square meters of land, of which 41 percent is in Mindanao, including Davao and Cagayan de Oro; 33 percent in the Visayas, including Bohol, Bacolod and Iloilo; and 26 percent in Cebu. This increased the total landbank to 976,302 sq m.
“We have developed 420,573 sq.m. of our landbank after IPO. We now have 52 projects in various developments and we’ve already expanded to eight key cities in VisMin,” he said.
CLI’s vertical and horizontal projects currently in various stages of development are located in Cebu, Mandaue, CDO, Davao, Bacolod, Dumaguete, Iloilo and Bohol.
Recently, it launched the P3.6 billion Astra Centre, its second mixed-use property seated on a 1.2-hectare lot along A.S. Fortuna Street in Mandaue City, Cebu.
This project will have residential towers, modern office spaces, an upscale boutique mall and world-class hotel for millennials, Radisson RED, which is also the first in the Philippines.
The first phase of the development will be completed in the fourth quarter of 2021.
The developer will soon launch another mixed-use property and a business district in Davao City.
Soberano said CLI is “leading the VisMin market” and is now successfully marketing relevant brands per segment.
“Premier series is designed for the high-end market, Garden Series condominiums and Velmiro homes are brands to serve the mid-market segment, and Casa Mira is for economic housing,” he said.
“We started introducing the Garden Series in Davao, CDO and Bacolod and the results have been exceptional,” Soberano said, adding that the developer will soon bring Velmiro and Casa Mira to new VisMin locations.
On the back of increased property deals closed by the company, CLI posted an increase of 30 percent in net income to P826 million in the first half of 2018 compared to P633 million posted in the same period in 2017.
Real-estate sales grew by 45 percent to P2.585 billion from P1.788 billion last year, mainly from MesaVerte Residences in Davao City, Baseline Center in Cebu City, Casa Mira South in Naga City and Casa Mira Towers Labangon in Cebu City.
Combined revenue reached P2.6 billion, growing by 45 percent from P1.807 billion posted during the two periods in review.