LISTED Visayas-Mindanao property firm Cebu Landmaster, Inc. (CLI) targets to launch its Luzon project developments by the middle of next year, its top official said on Thursday.
“Next year would be something that we can easily target, somewhere in the middle [of the year] probably,” CLI President and Chief Executive Officer Jose R. Soberano III told reporters in a media briefing.
For its expansion in Luzon, the company plans to first introduce its economic housing brand Casa Mira, said Chief Operating Officer Jose Franco B. Soberano.
“It’s our number one selling brand. It’s economic housing but with the best amenities, best property management, and widest possible roads,” he said. “So, we’ll start there.”
As it builds its base to expand in Luzon, the company aims to launch P29.75 billion worth of new residential projects during the year.
“[The company has] been gearing up for the ‘Next Level CLI’ strategy, which includes growing the company’s capital, expanding its portfolio, developing new areas, and striving for sustainability,” it said in a statement.
The company said 19 projects are set to be launched this year, the first of which are three hospitality projects that will add 477 keys and increase topline contributions. These projects are The Pad, lyf Cebu City at Base Line Center, and Citadines Bacolod City.
Additionally, the company is planning to add two more hotels to its portfolio next year. The company currently has 10 hotels in its hospitality portfolio, seven of which are partnered with international hotel chains while three are CLI brands.
“We are on the lookout [for new hotels], but at the same time we are quite content with the number of keys we are delivering right now,” the younger Mr. Soberano said.
The company is also planning to expand its gross leasable area by 50,000 square meters and expects to collect over P10 billion in project takeout.
Meanwhile, CLI is setting its sights on a possible real estate investment trust (REIT) in a few years to inject its portfolio of properties
“The prospects of entering the REIT market is part of our long-term strategy at CLI, supported by the continued development of a strong portfolio of projects that has reliable and steady base of recurring income,” CLI Chief Finance Officer Beauregard Grant L. Cheng said.
Mr. Cheng cited as examples office, retail, and hospitality projects that are slated to be operational in the next two to three years.
He added that to establish its REIT, the company plans to build up more recurring-income assets as it studies which of them can be injected into the REIT portfolio.
“We will study the strength of their cash flows,” he said. “It is then that we could determine the valuation of these assets, and which assets are right and mature enough to put into a REIT.”
“What we want to make sure is that we capture maximum valuation of these assets to return capital to our shareholders,” he added.
On Thursday, shares in CLI rose by 1.57% or P0.04 to P2.59 apiece. — Adrian H. Halili
