CHI earmarks P1.7 billion for 2007 project expenses

Riding the wave of Cebu''s strengthening economic landscape, Ayala Land-affiliate Cebu Holdings Inc. (CHI) allocates P1.7 billion for capital expenditure this year in both its real estate and commercial subsidiaries.

Bigger share is allocated in the expansion of its mall operations, of which bulk of the P820 million budget will be spent this year, to complete the Ayala Center expansion building, and the lagoon expansion project.

CHI''s subsidiary Cebu Property Ventures Development Corporation (CPVDC) will also spend about P700 million this year, for construction of high-rise buildings at the Asia Town I.T. Park.

The robust performance in residential real estate sector in Cebu, also prompted the company to allocate P150 million to introduce more phases at its flagship residential project Amara.

"Our current projects are aimed at capitalizing on growth possibilities in Cebu especially in the areas of Information Technology (IT) and leisure facilities and services," CHI president Francis O. Monera said.

For the first time CHI breached the one billion peso mark in revenue, with 76 percent increase of its income, a 10-year high in the company''s book history.

During the stockholders meeting held yesterday at the City Sports Club, Monera reported the company''s impressive performance in 2006, attributing the success to the intensified implementation of the company''s efficiency in operation as well as cost saving measures.

Overall, the company posted a 50 percent growth in revenues and a 76 percent growth in net income (after tax) last year.

Revenue derived from residential lot sales is 923 percent higher than 2005. Also, in 2006, the company sold its two remaining condominium units at Park Tower 2, contributing P18.4 million to revenue.

In its retail business, Ayala Center Cebu contributes a total revenue of P398 million. While Ayala Food and Entertainment Center (AFEC), together with its theater operations under the company''s wholly-owned subsidiary, Cebu Leisure Company, Inc. (CLCI) reported a P100 million contribution to CHI''s total revenue last year.

The sale of two lots at the Cebu Business Park (CBP) last year, also contributed P76.9 million to the revenue, posting a 125 percent growth in commercial and land sales over the previous year.

Cebu City Marriott Hotel, of which CHI is a part-owner in partnership with Ayala Hotels Inc., contributed another P27 million to the company''s bottomline.

CPVDC, on the other hand, posted a sales performance of P173.5 million, contributed by strong demand for office-space and investors'' confidence at the Asiatown IT Park.

"Our 2006 performance serves as a good foundation for the successful implementation of our growth strategy in the coming years," said Monera.

Yesterday''s stockholders meeting were attended by the company''s board members, led by its chairman Jaime I. Ayala.