DMCI property arm enters Cebu market
CEBU, Philippines — Consunji-led DMCI Holdings, whose construction business has been concentrated in the capital Manila, is making its foray into the real estate business in Cebu.
In a disclosure to the Philippine Stock Exchange Tuesday, the company said its real estate arm DMCI Homes is set to launch a new project in Cebu this year.
The company plans to launch 10 real estate projects worth P104 billion this year, up 271% from P28 billion in 2018, including its condo project in Cebu named Kalea Heights, located in Banawa, Cebu City.
The Manila-based developer said Cebu is its new market.
“We believe that the DMCI Homes brand can do well in the competitive Cebu market,” company president Alfredo Austria said.
Austria noted the Cebu market has a “wider acceptance of condominium living.”
To finance the project launches, DMCI Homes has earmarked P17.9 billion in capital expenditures, up by 23% from P14.5 billion in 2018.
Project funding will come from a mix of internal funds (including cash flows generated from the project) and bank borrowings.
DMCI’s D. M. Consunji Inc. is also one of the companies in the Cebu Link Joint Venture (CLJV), that bagged the award to build the third bridge connecting mainland Cebu and Mactan Island.
The construction and engineering consortium formed by the Consunji, Lopez and Spain-based Acciona Construccion S.A. had bagged a P22.6-billion design and build contract for Metro Pacific group’s 8.5-kilometer Cebu-Cordova bridge project.
CLJV is a joint venture of Acciona Construccion, FPH’s First Balfour Inc. and DMCI group.
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