ACC phase 2-B expansion to kick off by Q2 next year

CEBU, Philippines - Cebu Holdings Inc. (CHI) recently announced to start the ground works of the phase 2-B expansion of Ayala Center Cebu by second quarter of 2010.

This will entail another multi-million- pesos investment for the company, while its retail dynamism in Cebu is sustained despite the unpredictable global economic landscape.

“The expansion project will complete the full circle design of the mall. The design is to provide more international and local brands to the Cebuanos,” revealed CHI President Francis Monera in a recent press interview.

Although Monera refused to disclose the actual budget of the project, he said the development will cost more than what was allocated for The Terraces project.

CHI has spent close to P1-billion for the development of The Terraces, which opened last year.

The area eyed to be developed covers the stretch from the corner of the Cebu City Marriott Hotel, the parking area across the Rustan’s supermarket and the parking area for public utility vehicles or the South Surface Parking.

The South Surface Parking is part of CHI's super-block within the Cebu Business Park. The whole project will take two years to complete.

In 2008, ACC posted 10 percent growth of its total revenue last year, contributing to “still” dynamic retail market in the metropolis.

The year ended on an even positive note with the grand opening of The Terraces. This brought additional 8,500 square meters of leasable area that offers many first in Cebu such as popular restaurants, coffee shops and a wellness zone,” said Monera.

Aside from the active Cebuano shoppers and diners that boosted the growth of the shopping and leisure/entertainment mall, he said the positioning of ACC as a tourist destination also attracted increasing number of domestic visitors from all over the country, especially from neighboring provinces, to experience the sophisticated shopping and entertainment environment.

Monera said the strong presence of the Business Process Outsourcing (BPO) here, which provided high-paying jobs, also sustained the good performance of the entire retail arm operation CHI last year, amid the fragile economic landscape.

He said the influx of IT and BPO workers in Cebu that have high disposable income have helped the entire retail industry cope with the projected weak retail demand which started last year.

Meanwhile, the Ayala Land Inc. (ALI) will also start the development of its residential condominium project at the Cebu Business Park (CBP).

CHI is also working on the conversion of the CBP into an economic zone to create the same investor-friendly environment that the Asiatown IT Park (AITP) has.

Two months ago, CHI submitted its application to the Philippine Export Zone Authority (Peza) and received a “favorable” endorsement from Cebu City Mayor Tomas Osmeña and the Cebu City Council.