CPVDC lines up projects for Cebu IT Park

CEBU, Philippines - Publicly listed Cebu Property Ventures & Development Corporation (CPVDC), which is the developer of the Cebu IT Park, is now undergoing major business transformation, enhancing the live-work-play integration within the 24-hectare park.

In his report during the recent stockholders meeting of CPVDC, the company’s president Francis O. Monera, assured shareholders of the company’s aim to seize a huge share of the Business Process Outsourcing (BPO) and real estate (in both residential and commercial) markets in Cebu, by putting in more development projects within the cyberpark.

“Your company’s project, Cebu IT Park, is in a prime position to take advantage of this thriving growth. Cebu IT Park has the largest concentration of IT/BPO companies outside of Manila. It is home to over a hundred locators ranging the IT/BPO spectrum including research and development, knowledge process outsourcing, BPO and voice services,” Monera told shareholders.

CPVDC ended the year 2012 with revenues of P242 million and a net income of P132 million. According to Monera, these indicate a temporary dip compared to the previous year’s figures.

Upon operation, however, this planned commercial development will strengthen CPVDC’s leasing portfolio, providing higher rate per square meter of floor area.

The company’s revenues in 2012 involved a mix of office and retail leasing income, real estate sales, equity in net earnings of affiliate Asian i-Office Inc., and interest of other income.

Total assets stood at P1.6 billion, growing five percent from the P1.5 billion in 2011. Current assets are at P929 million, increasing by 23 percent from a year ago level.

Over the last couple of years, CPVDC has build up its leasing portfolio to ensure stable recurring income, and has boosted residential unit sales to drive revenue.

“The thriving BPO industry led CPVDC to invest more in office spaces. In 2012, we completed and fully leased out eBloc Tower 2 and started construction on the third tower within Cebu IT Park,” said Monera.

Complementing the growing number of companies at the Park are the dining and retail options at “The Walk”, and the ground level of eBloc Towers. Since it opened, The Walk has remained a preferred destination among IT workers, locals and tourists who visit the park.

For this reason, Monera mentioned the company’s plan to build a bigger entertainment, and shopping mall within the Cebu IT Park.

CPVDC also recently acquired full ownership of Asian i-Office Properties, which owns and operates eBloc Towers. This transaction will lead to value enhancement, improved efficiencies, streamlined processes and synergy creation between CPVDC and Ayala Land subsidiaries in Cebu.

The larger community and increasing number of jobs at the IT Park, has also led to the increased inventory of residential developments in this area, he said.

“Our very own Avida Towers Cebu, a partnership between associate Asian i-Office and Avida Land, sold out over a thousand units after it was launched in 2012,” Monera further reported.

In the last two years, build-up has accelerated dramatically within the Cebu IT Park due to the continuing large demand for office space, he said.

“Build up and on-going construction within the last two years will reach almost 182,000 square meters of gross floor area—almost double the total build-up of about 114,000 square meters within more than 10 years since the IT park was launched in 1996,” he reported.

He emphasized that CPVDC’s business is more diverse than just the IT Park, saying “our larger strategy involves transforming current and future land assets into fully-integrated and mixed-use developments to address the ever-evolving needs of the market,” he said. /JOB (FREEMAN)