CLI to get P2.9B boost from IPO

Cebu Land­mas­ters Inc. to strengthen its ‘ac­quire and de­velop im­me­di­ately strat­egy’ with raised cap­i­tal from IPO

Cebu Daily News - - FRONT PAGE - by Aileen Gar­cia-Yap SENIOR RE­PORTER CDN PHOTO/LITO TECSON

Ac­quire and de­velop im­me­di­ately. This is the busi­ness strat­egy em­ployed by home­grown real es­tate de­vel­oper, Cebu Land­mas­ters Inc. (CLI), as it em­barks on an ini­tial pub­lic of­fer­ing (IPO), which of­fi­cially opened on Fri­day, May 19.

They are look­ing to raise around P2.9 bil­lion in cap­i­tal from the of­fer, which will pri­mar­ily be used to pay out ex­ist­ing agree­ments for prop­er­ties that they are start­ing this year out­side Cebu, said Jose R. Sober­ano III, CLI chief ex­ec­u­tive of­fi­cer (CEO), in an in­ter­view on Thurs­day at the side­line of the Cebu IPO road­show.

The com­pany of­fers 505 mil­lion shares and an­other 75 mil­lion as over-al­lot­ment op­tion at P5 per share to bring the to­tal of­fer size to P2.9 bil­lion.

He said the cap­i­tal from the IPO would strengthen their thrust to de­velop as soon as they ac­quire the prop­er­ties.

“The strat­egy re­ally is to ac­quire be­cause we will de­velop im­me­di­ately,” he said.

Ear­lier this year, Sober­ano said they had ear­marked P12 bil­lion for more projects in Cebu and other key lo­ca­tions in Visayas and Min­danao re­gions.

CLI re­cently launched a high-rise, high-end con­do­minium at the Cebu IT Park called 38 Park Av­enue.

In Cebu, Sober­ano said they will con­tinue to de­velop high-rise con­do­minium and hor­i­zon­tal projects un­der the dif­fer­ent brands that they have de­vel­oped for spe­cific mar­ket seg­ments.

He said they are adding an­other Casa Mira pro­ject in Guadalupe and a Mivesa Gar­den Res­i­dences pro­ject.

De­vel­op­ment of the sec­ond phase of the Base Line Cen­ter will also start as well as a mixed-use com­plex at A.S. For­tuna and an In­dus­trial Park in Minglanilla.

New cities

Sober­ano said they are open­ing projects in new cities, in­clud­ing Davao, Dumaguete, Iloilo and Ba­colod where they will start by of­fer­ing their eco­nomic brand Casa Mira and their Mesa Tierra Gar­den Res­i­dences.

“In Dumaguete and Iloi- lo, we are bring­ing in the Casa Mira sub­di­vi­sions while in Dumaguete, there is a mar­ket for the Casa Mira tow­ers so we’re de­vel­op­ing that,” Sober­ano said.

In Davao City, the com­pany will be launch­ing the Me­saTierra Res­i­dences as an en­try point pro­ject while they will be launch­ing a sec­ond pro­ject in Ca­gayan de Oro called the Velmiro Heights Ca­gayan.

“We will fo­cus our ex­pan­sions in the VisMin area, es­pe­cially in these ar­eas where we have set (out) to ex­pand. These are the ar­eas where we see de­mand for prod­ucts that we have been suc­cess­fully of­fer­ing here in Cebu,” said Sober­ano.

CLI has a to­tal of 13 projects un­der dif­fer­ent stages of de­vel­op­ment and con­struc­tion to date and has over 25 devel­op­ments com­pleted in the last 12 years since they first started in 2003.

CLI is still pri­mar­ily a res­i­den­tial de­vel­oper with about 38 per­cent hor­i­zon­tal devel­op­ments while 46 per­cent are ver­ti­cal.

Ma­jor­ity of their projects are mid­dle end (57 per­cent), 19 per­cent are high end, 19 per­cent eco­nomic and 5 per­cent so­cial­ized.

Last year, CLI’s net in­come reached P702.32 mil­lion, rep­re­sent­ing a com­pounded an­nual growth rate of 150 per­cent since 2012.

Jose R. Sober­ano III, Cebu Land­mas­ters Inc. (CLI) CEO (left), dis­cusses the firm’s ini­tial pub­lic of­fer­ing in a road­show at the Marco Polo Plaza Cebu. With him are Stephen Tan (sec­ond from left), CLI’s chief fi­nance of­fi­cer; and Jose Franco Sober­ano, the firm’s COO.

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