Cebu Holdings mulls buying more land

Cebu Holdings Incorporated (CHI) has expressed interest to acquire more properties in Cebu, to add up to its existing land bank for development of more projects in the next few years.

Encouraged by its all-time-high performance last year, with earnings from operations reaching P1.28 billion, a 24 percent increase from the figures of last year, CHI president Francis O. Monera said the company is currently eyeing attractive parcels within Cebu to increase its property size here.

Of the P1 billion earmarked amount for capital expenditure this year, Monera said the amount still does not include the budget for future land acquisition.

Specifically, CHI will spend a total of P962 million for 2008 to fully complete its existing expansion projects in the Ayala Center Cebu lagoon area, and some phases of its luxury residential project called “Amara.”

Last year, the company spent a total of P511 million for its capital expenditure.

“Our retail businesses will continue to take the bulk of our investments with the ongoing lagoon development set to be completed and opened by the second semester of this year,” said Monera on the sidelines during the CHI annual stockholders meeting held recently at the City Sports Club.

CHI chairman Jaime I. Ayala said that the company is very bullish on the strong economic prospect in the Visayas and Mindanao, specifically Cebu.

“As we grow our business in the Visayas we will always need land. We are always on the lookout for land as we remain bullish on the economy,” Ayala said.

Ayala added that because of the upbeat economic landscape here, the company is poised to begin its “major moves” to take advantage on the environment.

However, aside from the completion of the ongoing lagoon project, and introduction of more phases of 46-hectare “Amara” project this year, Ayala declined to divulge the company’s “major moves.”

Ayala, on the other hand, hinted that the company is interested to locate at the South Road Properties (SRP), but he declined to expound further on the matter.

CHI’s consolidated net income also exceeded the 2006 figure by 22 percent, reaching P251.8 million, Monera described the performance as “the highest bottom line since the Company’s inception.”

Monera attributed the company’s handsome financial performance last year, to the strong Outsourcing and Offshoring (O&O) and tourism industries in Cebu.