Cebu Holdings, Inc. is a leading full-line property developer in Cebu City, Philippines engaged in real estate development, sale of residential and office condominium units, sports club shares, and lease of commercial spaces.
ABOUT OUR COMPANY
Who We Are
Cebu Holdings, Inc. (CHI) is a leading full-line property developer in Cebu City, Philippines engaged in real estate development, sale of residential and office condominium units, sports club shares, and lease of commercial spaces.
CHI is a listed company with the Philippine Stock Exchange (PSE) since 1994. The company was registered with the SEC on December 9, 1988, with an authorized capitalization of P1.0 billion. As of December 31, 2015, the company’s authorized capital stock is at P3.0 billion.
Our company is engaged in real property ownership, development, marketing and management. For 28 years, our business has allowed us to transform 77 hectares of land into integrated, master-planned and mixed-use eco-zones and business parks, launch 7,868 residential spaces, lease 288,743 square meters of retail and 107,953 square meters of office spaces.
In 1988, the provincial government of Cebu offered to sell via public bidding a 44.6 hectare piece of prime land previously leased to Club Filipino. The proceeds from the auction would be used as a counterpart funding by the provincial government for infrastructure and development projects. The floor price for the property was pegged at P220 million or approximately P493 per square meter.
A consortium of investors consisting of Ayala Land, Inc., Bank of the Philippine Islands, Kuok Philippines Properties, Inc., A. Soriano Corporation and the Philippine Long Term Equity Fund submitted the highest bid of P551 million or approximately P1,235 per square meter for the property.
Soon after winning the bid, Cebu Holdings, Inc. (CHI) was formed to act as the holding company of the consortium. On December 9, 1988, CHI was registered with the Securities and Exchange Commission with the primary purpose of engaging in the real estate business.
In 1990, CHI increased its total land holdings to approximately 50 hectares with the acquisition of a 5-hectare property adjacent to the Club Filipino property.
Pursuant to project management agreement dated January 10, 1989, CHI appointed Ayala Land, Inc. (ALI) as project manager for the development of the property of CHI in Cebu City of approximately 50 hectares, for a fee based on certain percentage of gross proceeds or revenues derived from the sale or lease of any portion of the developed property. The agreement provides that Ayala Land, Inc. shall undertake, among other things, the necessary functions and activities to develop the property into a multi-use complex consisting of office areas, shopping and entertainment centers, hotels and high density residential areas.
In its development of the Cebu Business Park, the Company transformed raw land into a masterplanned fully-integrated community by constructing roads and facilities required for the installation of water, drainage, sewerage, telecommunications and power systems. Certain areas in Cebu Business Park are reserved as open spaces for parks and common uses. In addition, the Company imposes certain restrictions on the construction of buildings on office lots it sells to ensure that the general character and value that it seeks to create for the property’s development are maintained.
The Company was listed in the Manila and Makati Stock Exchanges on February 14, 1994. The offering made available to the public 222.2 million shares of CHI stock.
In July 1995, after the terms and conditions of the tender offer were submitted for ratification of the stockholders, CHI acquired 76.26 percent of the outstanding shares of stock of Cebu Property Ventures and Development Corporation (CPVDC) for cash (P1.90 for every CPVDC share) and an exchange of the Company’s shares of stock (one CHI share for every 1.69 CPVDC shares) pursuant to the tender offer. About 51.5 percent of the tendered CPVDC shares was paid in cash. This was financed through a P700M long-term loan. A total of 201,957,581 shares were issued by the Company to CPVDC stockholders who opted for the share tender.
The tender offer enabled CHI to intensify its development efforts in Cebu while availing itself of CPVDC’s prime land resources. With the developments mentioned above, the Company’s ownership structure has also undergone changes. At present, CHI’s ownership profile include shares of Ayala Land, Inc., Santiago Land Development, the real estate arm of the Bank of the Philippine Islands, First Metro Investment Corporation, PCD Nominee Corp. and the public.
We shall be the premier real estate company in Cebu creating and providing market-driven products of enduring value through a customer-focused and highly-motivated team of professionals.
We ensure the trust and confidence of our shareholders with sustainable and profitable growth while improving the quality of life of the communities in the markets, which we serve with honor and integrity.
• Focus on Customer
• Bias for Results
• Entrepreneurial Drive
• Concern for People
• Empowerment of People
• Pursuit of Excellence
• Responsibility to the Community
• Love of God
• Enhancement of Quality of Life
Group Corporate Structure
Company’s Organizational Chart
Membership in Associations
Business and Management
Ayala Business Club Cebu, Inc.
Cebu Business Park and NeighboringBarangays Altruistic Alliance, Inc.
Cebu Business Park Association, Inc.
Cebu Chamber of Commerce and Industry
Chamber of Real Estate and Builders’ Association, Inc.
Geoplan Cebu Foundation, Inc.
International Council of Shopping Centers
Management Association of the Philippines
Philippine Quality and Productivity Movement – Visayas
Philippine Retailers Association
Philippine Chamber of Commerce and Industry
Financial Executives Institute of Cebu, Inc.
Global Reporting Initiative GOLD Community
Environmental and Ecosystems Conservation
Philippine Business for the Environment
Cebu Uniting for Sustainable Water Foundation
Education and Transformational Awareness
Cebu Educational Development Foundation for Information Technology
Cebu Holdings, Inc. (CHI), received the 2015 5Rs (Reduce, Reuse, Recycle, Refuse and Restore) Leadership Award (for Climate-Resilient & Eco-Friendly Companies in Cebu). The award recognizes the company’s initiatives on resource use efficiency, energy, water and solid waste management, biodiversity conservation and other strategies that help reduce the use of resources and emissions while achieving business gains derived from these environmental programs.
June 30, 2015, Cebu City
CHI’s subsidiary, Cebu Property Ventures and Development Corporation (CPVDC), is among the top ten finalists of the 4th Philippine Stock Exchange (PSE) Bell Awards. The PSE Bell Award is the highest accolade given locally to listed companies with “world-class corporate governance standards and practices.”
November 25, 2015, Makati City
CHI’s Ayala Center Cebu wins Gold in the International Council of Shopping Centers (ICSC) 2015 Pacific Shopping Center Awards competition recognizing the region’s most innovative shopping centers for outstanding achievement in marketing, design and development and retail. Gold winner in the renovations and expansions design and development category.
October 20, 2015, Taipei, Taiwan
CHI’s Ayala Center Cebu received the 2015 Mabini Award for PWD-Friendly Establishments. It was cited as one of the advocates for the welfare of persons with disabilities (PWD).
Joint Message from the Chairman and the President
Cebu Holdings, Inc. (CHI) transforms land into master-planned sustainable growth centers that redefine and enhance the Cebuano lifestyle.
In 2015, the company continued on its steady growth trajectory, sustained by a strong Philippine economy and capitalizing on a dynamic market.
We posted P3.7 billion in revenues, 63 percent higher than in 2014, and achieved a net income growth of 56 percent to P827.2 million. This resulted in a compounded annual growth rate of 14 and 16 percent, respectively, in the last five years.
We continued to enhance our flagship project—the 50-hectare master-planned, mixed-use development Cebu Business Park, which to date, is the single largest operating Philippine Economic Zone Authorityaccredited IT park in the country.
Our subsidiary Cebu Property Ventures and Development Corporation’s (CPVDC’s) Cebu I.T. Park also continues to capitalize on the preference of the Philippines as a BPO destination. With 23 buildings and nine more under construction, the I.T. Park continues to be home to over 70 percent of Cebu’s BPO industry.
To serve the growing community at Cebu I.T. Park and unlock land values of our properties, we broke ground for the redevelopment of its superblock–the Central Bloc in March 2015. This development will feature an Ayala Mall, two BPO office towers and a Seda hotel.
Once completed, this will serve as a new convergence area for I.T. Park office workers and the surrounding communities. In 2015, CPVDC also opened the Garden Bloc at the I.T. Park—an expansive garden enclave, which features dining concepts, as well as an events area in an outdoor setting.
We laid the platform for continued growth with strategic partnerships that will allow us to expand and develop new estates in other parts of Cebu in the coming years.
With parent company, Ayala Land, and AboitizLand, we are set to launch a 15-hectare city center project located in Subangdaku, Mandaue City within the first half of 2016. We are also completing the masterplan of a 13-hectare property in Mactan, Cebu which is designed to further boost Cebu’s tourism industry.
In an aggressive move to expand our land bank further, we entered into a partnership with Ayala Land and SM Prime Holdings, and successfully secured the winning bid for a 26-hectare lot at the coastal South Road Properties. This is our first venture in the southern part of the city, as we strive to expand urban development to new areas in the province.
Our various residential developments in partnership with other Ayala Land subsidiaries allowed us to cater to a wider range of markets. Total sales take-up reached P4.2 billion in 2015, 16 percent higher year-on-year while our company’s share in sales grew five percent higher to P250.1 million.
We also expanded our residential inventory with the launch of Ayala Land Premier’s The Alcoves, adding 480 units to our portfolio. Ayala Center Cebu also maintained its position as the premier lifestyle and shopping destination in Cebu, posting revenue growth of 17 percent from P1.0 to P1.2 billion. Average daily foot traffic increased by 12 percent, largely due to the opening of major lifestyle brands such as the much-awaited H&M, among others.
The latest expansion of the mall recently received a Gold Award in the renovations and expansions design and development category of the 2015 Asia Pacific Shopping Center Awards competition held in Taipei last November.
As Cebu is ranked globally as the seventh most preferred outsourcing destination, we continued to build more BPO and traditional office spaces to take advantage of the growing industry. At Cebu Business Park, we are currently constructing the Ayala Center Cebu Tower, and the Tech Tower which will further strengthen our presence in the BPO sector in Cebu.
We put high value on the trust of the investing public in the track record and potential of our company. We operate our business in a socially responsible manner, upholding the highest standards of transparency, compliance and good governance.
Added to this, CPVDC, through Asian i-Office Properties, is also set to complete its fourth installment of the eBloc Tower series, adding another 15,154 square meters of leasable space.
These developments will increase our leasing portfolio to a total of 123,713 square meters of gross leasable space upon completion. The BPI Corporate Center, a headquarter type office for sale project in partnership with Alveo Land was received positively by the market and will be ready for turnover by the end of 2016.
As we continue to build quality and well-planned living, working and leisure spaces, we also remain committed to our sustainability goals which are embedded in the way we do things. As we strive for triple bottom line growth, we focus on four of the United Nations Sustainable Development Goals that relate to our business including: decent work and economic growth; industry, innovation and infrastructure; sustainable cities and communities; and responsible consumption and production.
Our framework has allowed us to generate economic value in creating accessible and resilient spaces. In addition, we innovate our product lines to serve a broader segment of society with more affordable homes at Amaia Steps in Mandaue, and value efficient leasing spaces at the Garden Bloc and Tech Tower.
We also continue to streamline our processes to become more eco-efficient in the use of resources, and, at the same time, engage communities and industry partners to help grow local markets.
We put high value on the trust of the investing public in the track record and potential of our company. We grow our business in a socially responsible manner, upholding the highest standards of transparency, compliance and good governance. In 2015, CPVDC was recognized as one of the finalists in the 4th Philippine Stock Exchange (PSE) Bell Awards. The PSE Bell Award is the highest accolade given to listed local companies with worldclass corporate governance standards and practices.
Organizational development remains a top priority for CHI. We invest in the training and wellness of our employees and empower them to enable the company to seize emerging opportunities in the market. We thank our employees for staying focused and working effectively towards achieving our targets.
Moving forward, we will be creating developments that bring in substantial cash flow, while also increasing our recurring income portfolio to achieve balanced growth. We also continue to look for opportunities to expand the business, as well as maximize the potential of the communities where we operate.
To our shareholders, thank you for your continued trust in the company.
Where We Operate
2015 Sustainability Performance Highlights