CLI earmarks P4 billion for Pristina North project

CEBU, Philippines —  Cebu Landmasters Inc. (CLI) will build a mixed-use, vertical village within the posh Pristina North Subdivision this year.

CLI, in partnership with Erramon Aboitiz will start the integrated development within the five-hectare Pristina North Complex.

The Pristina North development is a P4 billion project, which will take a bigger chunk of the P8 billion fresh capital investments for its three projects in Cebu.

During the company’s first quarter investors’ and analysts’ briefing on Monday, May 16, 2022, Jose Franco Soberano, CLI executive vice president and chief operating officer (COO) announced that at least three new projects will be launched in Cebu this year, including the P4 billion mixed use development in Pristina North, a P2 billion residential project in Casuntingan Mandaue City, and another P2 billion residential development in Danao City.

The Danao City project, Soberano said is an expansion of Casa Mira located along the highway and will be part of a complex with a retail component. Launching of the Danao City project is set in the third quarter 2022.

Overall, the company’s chief finance officer Grant Cheng said, CLI is setting aside P13 billion for capital expenditures to fund new purchases and other expenses. The company already spent the P2.6 billion in the first quarter, of which P500 million was spent for land banking.

The Cebu-based listed developer, reported an outstanding first quarter 2022 revenue growth of 53 percent to Php3.56 billion from Php2.3 billion in first quarter 2021.

The company attributed the surge in revenues due to real estate sales from a number of projects that have been increasing over the years. These have resulted in greater construction progress and consequently, higher revenue recognition. Moreover, construction was in progress due to catch-up measures during the pandemic and is now in full swing in the listed company’s 15 VisMin sites.

Sales take-up also surged to Php4.5 billion or 36 percent more than first quarter 2021’s Php3.3 billion.

The biggest contributor was The East Village, the first residential project of CLI’s Davao Global Township (DGT) named as the Best Township in Asia by PropertyGuru Asia Property Awards in 2021. Three of the residential community’s six towers sold out in four days, prompting the launch of the fourth tower in second quarter 2022.

CLI clarified that earnings of Php806 million from Php714 million or 14 percent over the same period are recorded when the CREATE law facilitated one-time tax benefits for the firm.

“We are pleased that we began the year strong with robust sales and swift construction pick up of new projects,” said CLI chairman and chief executive officer Jose Soberano III, adding that the company is on track to hit our growth target of at least 20 percent.

“We remain ready to make the most of opportunities presented by the fast-recovering VisMin economy,” added the older Soberano.

CLI’s rental revenues improved by 28 percent and are attributable to increases in lease contracts and new tenants in the newly completed Latitude Corporate Center. Hotel revenue grew fourfold with the reopening of local and international borders, reviving trade and tourism.

CLI also launched in Q1 2022 Astra Corporate Center in Cebu and new phases of Velmiro Plains Bohol and Casa Mira Dumaguete.

To date, CLI has sold out 89 percent of all its projects in the various stages of development across VisMin. Completed projects are 96 percent sold out; ongoing developments, 86 percent sold out; and those launched in first quarter of 2022, 80 percent sold out.

CLI is also expected to collect over Php12 billion take out value from strong turnover of newly completed projects such as MesaTierra Garden Residences in Davao, Latitude Corporate Center and 38 Park Avenue in Cebu, MesaVerte Residences and Velmiro Heights CDO in Cagayan de Oro and MesaVirre Garden Residences in Bacolod.

The company’s 121-hectare high-value landbank will ensure CLI’s sustainable performance in the next few years.