CLI buys P133.4 M property in Cagayan

CEBU, Philippines — Cebu Landmasters Inc. said on Friday it purchased a P133.4-million property in Cagayan de Oro as it continues to expand outside Cebu.

In a disclosure to the Philippine Stock Exchange yesterday, the listed company said it executed a deed of absolute sale with a local land owner to purchase a 7.2-hectare property in CDO City for P133.4 million.

"The city, now considered as highly urbanized and 10th most populous in the country is one of the key sites identified by the company for expansion as stated in the use of IPO (initial public offering) proceeds," the property developer said.

The CDO property will be developed into a residential project under the Velmiro heights brand of the company which first established its presence in Cebu in 2013.

In response to the growing needs and preferences of various markets, the real estate firm will be developing its second Velmiro Heights project in CDO set to be launched in first quarter of 2018.

"The project will be a modern mid-range residential development in the upland area of Cagayan de Oro city providing elegant, comfortable and well-designed homes and luxurious amenities suitable for the refined tastes of its clientele," it said.

This will be CLI's second project in CDO after MesaVerte, a three tower condominium that sold already 95 percent of its 798 inventory units.

The land acquisition was funded through the IPO proceeds.

"Within three months from listing, CLI has already utilized 15.4  percent of the proceeds and is confident that other projects will be implemented on schedule," the firm said

CLI debuted on the stock exchange last June 2.

The company already paid 50 percent of the amount or P66.7 million and will be fully paid once land title is transferred to its name.

The company saw its net income rising by 164 percent to P634 million in the first half of 2017

Its revenues reached P1.8 billion, up 107 percent, boosted by strong sales take-up.

It said its balance sheet is largely geared to support its expansion plan.

The firm's total assets recorded in the first six months of the year reached P8.9 billion, up from P5.4 billion a year ago.

CLI shares closed at P4.90 apiece during the market recess noon yesterday. (FREEMAN)