CHI to convert CBP into economic zone

CEBU, Philippines - The Cebu Holdings Inc. (CHI) is converting the 52-hectare Cebu Business Park (CBP) into a full-blown economic zone, riding on the dynamic growth of the Information Communication Technology (ICT) industry in Cebu. 

CHI president Francis O. Monera announced that the company has already applied for the conversion of CBP to an economic zone to the Philippine Economic Zone Authority (PEZA) and got a favorable endorsement from Cebu City Mayor Tomas R. Osmeña.

Monera said CHI is also expecting a counter-resolution from the Cebu City council to endorse CBP as an economic zone, while its subsidiary company Cebu Property Ventures Development Corporation (CPVDC), the developer of Asia Town IT Park, has seen strong demand for BPO related building spaces.

Any spillover from the Asia Town can be easily accommodated at CBP specifically if the area will become a PEZA-registered zone, Monera said.

Some buildings at the CBP like the Cebu ICT Tower have already gotten PEZA registration as IT-building which automatically allows tenants to enjoy of fiscal perks from the government.

However, Monera said it is important to make CBP much friendlier to investors so that they can easily avail of the government incentives, depending on the industries they are in.

Currently, the CBP has already a number of IT buildings. Aside from the Cebu ICT Tower, there are also Lexmark, Pioneer, and Globe towers.

According to Monera there are a total of 12 lots available at the CBP, once PEZA will approve the registration, locators can avail of the eco-zone incentives as long as they conform to the requirement.

Based on the company’s 2008 annual report, CHI posted 59 percent growth performance in 2008, versus the other year due to active take of its real estate products. The company is gearing towards pouring more investments on the Business Processing Outsourcing (BPO) sector.

According to Monera demand from outsourcing and off shoring business has caused the highest spike in construction at the 52-hectare Cebu Business Park (CBP) since 1998.  

Despite the onset of the global recession, CHI generated its highest-ever consolidated revenue at P1.5 billion in 2008.

Net income was also at an all-time high of P399.5 million, a 59 percent higher over 2007 performance.

“Commercial lot sales at Cebu Business Park boosted revenue for the real estate development business at the early part of the year [2008]. A major commercial lot sale was booked at CBP, and build-up continued to be bullish in the city’s premier commercial and business district,” Monera said.