CHI in­fuses P39B fresh cap­i­tal for Cebu projects

The Freeman - - BUSINESS - Ehda M. Da­gooc,

Ayala Land Inc., (ALI) af­fil­i­ate, Cebu Hold­ings Inc. (CHI) in­fuses P39 bil­lion cap­i­tal­iza­tion for its up­com­ing prop­erty de­vel­op­ments in Cebu.

CHI pres­i­dent Anecito Bis­nar Jr., said the ex­panded po­ten­tial for prop­erty de­vel­op­ments in Cebu prompted the com­pany to in­vest more.

Aside from its ex­ist­ing joint ven­tures with big de­vel­op­ers like AboitizLand and the Metro Gaisano Group, CHI is also up­beat on con­sid­er­ing fur­ther proper ex­pan­sions within the me­trop­o­lis.

Bis­nar men­tioned the promis­ing tourism sec­tor in Cebu as one of the pri­mary rea­sons why the com­pany is pur­su­ing big­ger cap­i­tal ex­pen­di­ture.

In the last five years, CHI has poured at least P14 bil­lion in­vest­ments in Cebu on its joint ven­tures, on­go­ing con­struc­tion of com­mer­cial projects and the up­com­ing shop­ping mall project at the Cebu IT Park.

Ac­cord­ing to Bis­nar, Cebu’s econ­omy and growth fore­casts re­main ex­cit­ing and dy­namic.

Com­pany prospects in re­tail, tourism, res­i­den­tial spa­ces, business process out­sourc­ing (BPO) mar­kets, and prop­erty leas­ing have re­mained strong.

CHI ended 2016 with P2.7 bil­lion in rev­enues – a mix of re­tail and of­fice space leas­ing, res­i­den­tial lot and con­do­minium sales, the­ater oper­a­tions and in­ter­est, and other in­come. Its net in­come stood at P679.7 mil­lion while to­tal as­sets grew to P19.6 bil­lion.

Rental in­come rose 68 per­cent boosted the com­pany’s rev­enue last year, with sales from res­i­den­tial lot and condo sales at 11 per­cent.

Its sub­sidiary Cebu Prop­erty Ven­tures and De­vel­op­ment Corp. (CPVDC), the de­vel­oper of Cebu IT Park closed 2016 with P695 mil­lion in rev­enues and P213.6 mil­lion in net in­come, ow­ing mostly to lease in­come from of­fice build­ings. CPVDC’s to­tal as­sets grew to P5.5 bil­lion.

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