CEBU Landmasters, Inc. (CLI) has partnered with the property arm of Aboitiz Equity Ventures, Inc. (AEV) for the development of a mixed-use condominium complex in Mandaue City.
In a statement Monday, the listed property developer said it has sealed a deal with Aboitiz Land, Inc. (AboitizLand) for the formation of Aboitiz CLI Developers, Inc.
The joint venture firm will develop a mixed-use, multi-tower condominium targeted toward the mid-market segment. They plan to launch the project by next year.
“With our roots in Cebu, AboitizLand and Cebu Landmasters understand the Cebuano market well. Our partnership is a first and a milestone for both companies. We have decided to collaborate for the betterment of Cebu contributing to quality housing needs of the community,” CLI Chief Executive Officer Jose R. Soberano III said in a statement.
Meanwhile, AboitizLand sees the project as an opportunity to further expand its presence in the country.
AboitizLand’s first residential project called North Town Homes was also developed in Mandaue City back in 1994. It has since expanded to other parts of the Visayas region, Luzon, and Metro Manila.
“As AboitizLand continues its aggressive expansion in Luzon and Metro Manila, we remain grounded in our Cebuano roots. This partnership aligns with our goal to continue to strengthen our presence here with current and future developments,” CLI quoted AEV President and Chief Executive Officer Erramon Aboitiz as saying in a statement.
For its part, CLI has been bullish with its expansion in the Visayas and Mindanao region. It recently announced a P1-billion investment for residential projects in Bacolod City, in addition to a P1.4-billion serviced residence in the area carrying the Citadines brand.
The company currently has 58 projects in the region in different stages of development.
With its aggressive launches, CLI generated a 155% increase in reservation sales to P2.87 billion in the first half of 2019. Its net income attributable to the parent grew 13% to P854.34 million in the same period, on the back of a 34% jump in revenues to P3.495 billion.
AboitizLand saw a 79% decline in earnings to P60 million in the first half of the year, after revenues also dropped 28% to P1.4 billion. The company traced the decline to the deferred revenue recognition of industrial lot sales in its industrial business unit.
Shares in CLI slipped 0.81% or four centavos to close at P4.91 each at the stock exchange on Monday, while AEV shares gained 0.09% or five centavos to P55.65 apiece. — Arra B. Francia