Real estate firm sets aside P5B for projects-A A +A
Sunday, April 20, 2014
REAL estate player Cebu Landmasters Inc. (CLI) is setting aside an initial investment of P5 billion in the next five years to develop an additional 200,000 square meters (sq.m) of floor area for several planned mixed-use developments in Cebu and Cagayan de Oro City.
These new projects include a one-hectare property in the midtown area of Cebu; one-hectare beachfront property in Mactan; a 3,000 sq.m office and commercial building in Cebu Business Park; a 5,000 sq.m condo residential and commercial development in Mandaue; and a 5,000 sq.m housing project in Cagayan de Oro.
“The thrust for our vertical projects will now be more on mixed-use type of development. While for the horizontal projects, we will be building more socialized and economic housing in Cebu and in other areas in Visayas and Mindanao,” said CLI president and chief executive officer Jose Soberano III.
CLI is looking at expanding in key areas like Cagayan de Oro, Bacolod, Iloilo and Davao. Soberano said they already bought some properties in these areas and Cagayan de Oro will be the company’s first regional expansion.
“The CDO project will be a combination of economic and socialized housing projects,” he said.
Citing industry reports, Soberano said that the country has about 3.5 million units in housing backlog, mostly from the mid to low market segments.
“We are partly addressing the need. We need to augment developments in middle to low market because this is where the huge housing backlog is not only in the province but across the country,” Soberano said.
CLI currently has 12 projects, five of which were already completed. CLI started operations in 2004.
It is set to turn over a total of 1,600 residential house and lot units for various developments including San Jose Maria Villages in Balamban, Minglanilla, Toledo and Talisay in Cebu in the next two years.
Of the 1,600 units, 500 units are socialized housing while the rest are economic and low to mid-end units.
Unit prices of socialized housing start at P400,000 while economic housing starts at P800,000 to P1.5 million.
CLI is also set to deliver 120,000 sq.m of floor area in the next three years for its condo and office projects. It will have at least 2,500 total condo units delivered by that time.
On top of the mentioned expansion areas, Soberano said they are also eyeing calamity-stricken areas as potential location for housing development. He identified Leyte, Bohol and Dumaguete.
Soberano attributed the company’s aggressive expansion to the growing demand in housing, supported by the continued boom in the BPO sector, expansion in the middle class segment, strong inflows of overseas remittances and the overall healthy economic condition of the country.
“When the economy improves there is more appetite for more investments,” he said.
Due to the fast takeup of CLI’s Mivesa project in Lahug, Soberano said the five-year development program for the seven-tower condo residential complex will be shortened to a three-year development program.
He said they will likely start selling the units of the 6th building this year.
Published in the Sun.Star Cebu newspaper on April 21, 2014.