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MANILA, Philippines – Cebu Landmasters Incorporated, a property developer planning to conduct an initial public offering (IPO) in 2017, said it has earmarked P12 billion in capital expenditures over the next two years to finance projects in the Visayas and Mindanao.
Cebu Landmasters president and chief executive Jose Soberano III said bulk of the planned projects over the next two years consists of 7,000 economic housing units, two mixed-use communities, and two hotel projects in Cebu.
“We are setting our sights on the VisMin region where we have the capacity to win, where there is high demand for value and quality developments, and where there are still opportunities for significant growth,” Soberano said.
For its residential projects, Cebu Landmasters will launch units in Dumaguete, Cebu, Bohol, Iloilo, and Bacolod costing between P700,000 and P1.7 million.
It will also launch mid-priced units in Cebu, Cagayan de Oro, and Davao worth between P1.8 million and P5 million, as well as premier residential units in Cebu worth P5 million.
Cebu Landmasters chief operating officer Jose Franco Soberano said the company remains positive about demand for residential units in the Visayas and Mindanao.
“The momentum is just picking up. The market in Visayas and Mindanao is really booming,” he said.
To provide recurring income for the company, Cebu Landmasters is also building new office and hotel projects.
The company recently tied up with the Ascott Group, one of the world’s largest serviced apartment providers, to manage Citadines Cebu City.
Slated for completion by 2019, the 180-room Citadines hotel is situated within a mixed-use development in Cebu.
From 2012 to 2016, Cebu Landmasters’ net income posted a 150% compounded annual growth rate (CAGR) while revenues CAGR stood at 51.5%.
For its IPO, Cebu Landmasters intends to raise up to P3.8 billion from the sale of 505 million common shares with an overallotment option of 75 million shares at an offer price of up to P6.56 per share.
This represents up to 34% of the company’s outstanding common shares, post-IPO.
BDO Capital and Investments Corporation and BPI Capital Corporation are the joint underwriters for this offering. – Rappler.com