CLI allots higher capex, partners with Japan firm

MANILA, Philippines — Cebu Landmasters Inc. (CLI) is hiking its capital spending to P14.5 billion this year as it gears up for growth and expansion following a strong financial performance in 2023.

CLI’s capital expenditures for 2024 will support the company’s new development in the pipeline worth P27 billion, including expansion projects in various regions such as Butuan, as well as for land acquisition, particularly for its inaugural Luzon project.

The company has 11 pipeline projects for launch that is expected to drive reservations sales for the year.

Last year, CLI capex reached P12.9 billion, with 82 percent allocated to project development, six percent directed toward land acquisition and the remaining 12 percent for investment property.

Consolidated net income of the company in 2023 grew 29 percent year-on-year to P4.64 billion, driven by a 20 percent increase in consolidated revenue.

CLI’s revenue, which amounted to P18.8 billion last year, was achieved on the back of strong demand for the company’s residential properties and its diverse and dynamic business portfolio.

CLI said its strong financial performance, diversified revenue streams, strategic expansion initiatives and a robust pipeline of upcoming projects position the company for continued growth and success in the coming years.

“Our consistent growth fuels our vision to strengthen the company’s current offerings and expand beyond VisMin. This is also a testament to the resilience, hardwork and dedication of our team,” CLI chairman and CEO Jose Soberano III said.

CLI on Tuesday announced the signing of its first international partnership, forming a joint venture with Japan-based global real estate firm NTT UD Asia Pte. Ltd. (NTTUDA) to establish CLI NUD Ventures Inc.

The joint venture’s initial project is a P6.4 billion, two-tower Japanese-inspired residential complex in Cebu IT Park.

Tower 1 is set for launch by the fourth quarter of 2024.

The collaboration marks NTT UD’s first venture in the Philippines, expanding its global portfolio with mixed-use, office and residential projects.

“We are bullish that the strategic capital raise through preferred share issuance and our first-ever international partnership would fortify our growth and expansion. This also strengthens our commitment to delivering exceptional value to our stakeholders as we keep enlarging our business,” Soberano said.