CLI to boost rental property portfolio
CEBU Landmasters, Inc. (CLI) sees its leasable projects contributing to a tenth of total revenues by 2023, as gross leasable area (GLA) is expected to breach the 200,000-square meter (sq.m.) mark by then.
In a statement issued Thursday, the Cebu-based property developer said it will complete a mix of office, hotel, and commercial establishments within the next four years that will strengthen its recurring income sources.
Projects that will generate recurring revenues include the Astra Centre Lifestyle Mall on A.S. Fortuna Street in Mandaue City that will cover a gross floor area of 14,000 sq.m. The company expects to complete the project in 2021.
The company’s first mixeduse project called Base Line Center in Cebu City will also feature more than 4,700 sq.m. of office spaces and 5,900 sq.m. of retail area. Last year, the company already turned over 2,655 sq.m. of its retail area to Robinsons Supermarket, increasing its GLA by 33% to 8,952 sq.m.
CLI said its residential condominiums also have retail spaces averaging between 500 to 1,000 sq.m.
“Our leasing business complements our residential developments, allowing us to provide complete and gratifying experience to the communities that we build and customers that we serve,” CLI President and Chief Executive Officer Jose R. Soberano III was quoted as saying in a statement.
The company’s foray into the hospitality industry will further boost its target for recurring revenues, banking on the demand for more accommodations in the Visayas and Mindanao regions. It targets to have more than 1,000 hotel rooms by 2023.
“With the continuous growth of the hospitality industry in VisMin, demand for hotel rooms will definitely rise. Cebu Landmasters is at the forefront in providing what the market needs, especially those that travel a lot, from hotel rooms to serviced residences,” Mr. Soberano said.
CLI’s hotel projects include four projects managed by international serviced residences operator The Ascott Limited. The first will be Citadines Cebu City that will be operational within the year with 180 units.
The other three projects with The Ascott are Citadines Paragon Davao, Citadines Bacolod City, and lyf Cebu City.
Aside from The Ascott, CLI also partnered with the Radisson Hotel Group for the first hotel in the country carrying the Radisson Red brand that caters mostly to millennials. This will be located in Astra Centre.
CLI’s net income attributable to the parent stood at P932.73 million in the first nine months of 2018, three percent lower year on year. Gross revenues, meanwhile, climbed 33% to P3.69 billion in the same period a year ago.
Shares in CLI dropped 2.20% or nine centavos to close at P4 each at the stock exchange on Thursday. —