CEBU LANDMASTERS, Inc. (CLI) has reallocated a portion of the net proceeds of its maiden offer in June to finance joint ventures instead of singly acquiring land, it told the stock exchange on Monday.
The Cebu-based property developer said in a disclosure that its board of directors has approved the reallocation of P420 million to joint venture (JV) projects, as well as an excess of P130 million that can be used to fund future developments.
The firm said instead of disbursing P120 million for the acquisition of land to be used for a residential project in Davao, the amount will now be invested in its affiliate, Yuson Excellence Soberano, Inc. The latter, which is also the developer of CLI’s MesaTierra Residences, will in turn purchase the land.
Another P300 million will also be invested in JV a with the landowners of the land to be used for a mixed-use project in Davao. CLI will still be the venture’s developer and project manager.
“This allows CLI to immediately develop the prime landbank of our JV partner in Davao. This gave CLI a very strong entry point in Davao,” CLI Chief Operating Officer Jose Franco B. Soberano said in a text message when sought for clarification.
CLI has also struck a deal with the owner of land for a project in Guadalupe, Cebu City to pay their balance in the form of condominium units, effectively placing the value of land at P50 million, or P130 million less than the firm’s allocated amount.
“Since there is now P130 million available for reallocation, the Board has authorized it to be used either to fund the construction of the condominium towers or use it to purchase another land for future project,” the firm said.
CLI raised P2.9 billion during its initial public offering (IPO) on June 2, which it said will be used for the acquisition of land in the Visayas and Mindanao region.
Shares in CLI gained 1.12% to close at P5.40 apiece on Monday. — Arra B. Francia
