CLI targets to launch 15 projects in 2021

CEBU, Philippines —  Cebu Landmasters Inc. (CLI) prepares to launch 13 to 15 projects by 2021, as the real estate market continues to show positive performance amid pandemic.

CLI chief financial officer Beauregard Grant L. Cheng announced yesterday that despite hurdles encountered during pandemic, the company intends to pursue planned projects for next year, including the ongoing construction of its hotel projects.

Before the end of this year, CLI is set to launch six more projects.

According to Cheng, the decision to launch more projects in 2021 is fuelled by the encouraging sales turned out in last nine months of 2020. In fact, residential inventory is 92 percent to 100 percent sold out.

CLI posted P 5.7 billion 9-month consolidated revenues, closely matching 2019 pre-pandemic performance.

Third quarter 2020 revenues surged to P 2.2 billion, 57 percent hike quarter-on-quarter, as quarantine restrictions eased in key VisMin cities driving CLI construction efficiency to 90 percent from the previous quarter’s 70 percent.

Moreover, collections improved with 500 more accounts qualifying for higher revenue recognition.

Earlier in the year, the listed firm secured its uninterrupted expansion by launching five residential projects with high sales velocity valued at P5.5 billion, while expanding to new areas in VisMin despite the pandemic.

Expansion areas include Iloilo, and the underserved areas of Bohol and Ormoc.

Consequently, reservation sales for the first nine months increased by 14 percent year-on-year to P10.5 billion.

The boost in reservation sales translates to P17.9 billion in unrecognized revenues, or an 18 percent increase, and sustained earnings in the near future.

“We are pleased to serve new residential homeseekers in VisMin, where demand for residential housing has proven to be a bright spot in the region’s economy. There has been sustained demand from both local and OFW buyers, which has enabled CLI to surpass our reservation sales performance in 2019. The housing backlog has never been more pronounced than now due to the pandemic, and it's our shared responsibility to address this backlog as best we can,” said Franco Soberano, CLI executive vice-president and chief operating officer.

In the near term, the continued turnover of CLI residential projects will secure the firm’s footing moving forward. CLI was able to continue turnover of projects during this period, including the three-tower MesaVerte Garden Residences with 700 units in Cagayan de Oro; Mivesa Garden Residences Tower 6 and 7 with 576 units in Cebu City; Base Line Premier with 379 in Cebu City; and more than 1,700 units of Casa Mira South phases 1 and 2 in Naga-San Fernando, Cebu.

These project completions will generate a total of P5.8 billion worth of future cash inflows and secure income streams for CLI.