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This article was featured online on March 1, 2017 in BusinessWorld. Link: BusinessMirror – Cebu Landmasters allocates P12B to VisMin expansionCebu Landmasters allots P12 billion for property development
CEBU-BASED property developer Cebu Landmasters Inc. said it would be spending at least P12 billion over the next two years for its residential, commercial and hotel developments in key cities of the Visayas and Mindanao regions as part of its expansion plans.
The majority of the projects will consist of over 7,000 economic housing units ranging from P800,000 to P1.7 million in the provinces of Dumaguete, Cebu, Bohol, Iloilo and Bacolod.
The firm will also launch mid-end units ranging from P1.8 million to P5 million in Metro Cebu, Cagayan de Oro and Davao City; premier residential units above P5 million in Cebu City; two mixed-use communities in Davao City; and two hotel projects in Metro Cebu.
“We are setting our sights on the VisMin region, where we have the capacity to win, where there is high demand for value and quality developments and where there are still opportunities for significant growth,” said Jose Soberano III, the company’s president and CEO.
Cebu Landmasters recently filed an application for an initial public offering (IPO) of up to P3.8 billion.
The company posted revenues of P2.17 billion in 2016 and a net income of P702 million from the construction, mostly of economic housing and mid-end projects in Cebu, including two of the fastest-selling residential condominiums in the metropolis.
In the past six years, the firm has diversified from housing targeted mostly to overseas Filipino workers (OFWs) and workers in Cebu’s industrial sites to high-end residential and office developments in Cebu’s key central business districts.
It is currently constructing a mixed-use development in Cebu City anchored by the 180-room Citadines Cebu City.
Cebu Landmasters diversified to office and residential condominium development in 2010 just at the time when the residential and office markets were heating up in Metro Cebu.
The company is selling 580 million common shares at an offer price of up to P6.56 per share.
“This represents up to 34 percent of the company’s outstanding common shares, post-IPO,” the company earlier said.
“Of the firm’s shares, 430 million are new shares forming the primary tranche, while 75 million are existing shares forming the secondary tranche. The 75 million shares from the greenshoe will be from existing shareholders,” it added.
Part of the proceeds will also be used for debt repayment and working-capital requirements.
The IPO is eyed by mid- to late-May 2017 BDO Capital serves as the sole issue manager. – VG Cabuag, businessmirror.com.ph