CLI firms up land banking efforts in Luzon

CEBU, Philippines — Publicly-listed property builder Cebu Landmasters Inc. (CLI) has announced its intention to continue its land-banking efforts with a greater focus on aggressive expansion in the Luzon area, thereby joining the ranks of real estate giants in the Philippines.

During the company’s recent briefing, CLI chairman and chief executive officer (CEO) Jose Soberano III said that a significant part of its P14.5 billion capital expenditure (capex) allocated for 2024 will be used to fund acquiring lands, particularly in Luzon, where the company recently made its entry.

According to Soberano, CLI’s consistent growth fuels its vision to strengthen the company’s current offerings and expand beyond Visayas and Mindanao.

In 2023, CLI launched 10 new projects, with a collective value of P18.7 billion and offering 4,249 units. These projects achieved an impressive 63 percent sell-out rate with less than a year in the market.

Company report revealed that completed projects are already 97 percent sold-out, resulting in the blended total portfolio sell-out rate of 93 percent.

The Cebu-based company posted a 29 percent increase in consolidated net income year-on-year, to P 4.64 billion. CLI also recorded significant growth in net income to its shareholders, up by 13 percent to P3.58 billion from last year’s P 3.17 billion.

The growth is attributed to a solid 20 percent increase in consolidated revenue, reaching P18.8 billion across all revenue streams mainly from real estate sales revenues, and also includes hotel operations, and leasing.

This is on the back of strong demand for CLI’s residential properties and its diverse and dynamic business portfolio.

Revenue from real estate sales maintained an upward trajectory, rising 20 percent to P18.5 billion, driven by consistent collections and steady construction progress.

The company further recorded a P20.6 billion reservation cost, marking a 14 percent increase from 2022’s P18 billion. This adds to its pipeline of future revenues.

International Partnership

Recently, CLI signed a joint venture agreement with Japan real estate firm NTT UD Asia, its first international partnership.

The Japan-based global real estate firm NTT UD Asia Pte. Ltd. (NTTUDA), a subsidiary of NTT Urban Development Corporation (NTTUD), and CLI will establish CLI NUD Ventures, Inc.

The initial project is a PHP6.4 billion, two-tower, Japanese-inspired residential complex in Cebu IT Park, with Tower 1 set to launch by the fourth quarter of 2024.

Likewise, this collaboration with CLI marks NTTUD’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,” added Soberano. — (FREEMAN)