ABOUT OUR COMPANY

CHI is a leading full-line property developer with headquarters at Ayala Center Cebu Tower, Cebu Business Park, Cebu City.


OUR GALLERY

Our Company

CHI is a leading full-line property developer with headquarters at Ayala Center Cebu Tower, Cebu Business Park, Cebu City.

Since its establishment in 1989, the company has played a key role in creating major growth areas in the province through socially inclusive and environmentally responsible business strategies.

CHI is engaged in real estate development, including sale of residential and office units, sports club shares, and lease of commercial spaces.

For 30 years, our business has allowed us to transform 155.9 hectares of land into integrated, masterplanned and mixed-use eco-zones and business parks; launch 5,318 residential lots and condo units; and lease 129,100 square meters of retail and 128,119 square meters of office spaces.

 

Our Businesses

  • Estate Development and Management
  • Residential Subdivision and Condo Sales
  • Office Condominium Sales
  • Office Space Leasing
  • Retail Space Leasing
  • Residential Space Leasing
  • Sale of Sports Club Shares

 

Company History

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., PCD Nominee Corp. and the public.

 

Ownership Structure

CHI provides value by engaging in real property ownership, development, marketing and management.

The company was registered with the SEC on December 9, 1988, with an authorized capitalization of P1.0 billion. As of December 31, 2018, its authorized capital stock is at P 3.0 billion.

Mission and Vision Statement

We shall be the premier real estate company in the region, creating and enhancing integrated, masterplanned, and sustainable mixed-use developments through a customer-focused and empowered team of professionals.

We ensure the trust and confidence of our stakeholders with sustainable growth while improving the quality of life of the communities we serve with passion and integrity.

Core Values

• Focus on Customer
• Bias for Results
• Entrepreneurial Drive
• Teamwork
• Concern for People
• Empowerment of People
• Pursuit of Excellence
• Love of God
• Responsibility to the Community
• Enhancement of Quality of Life

 

Group Corporate Structure

Company’s Organizational Chart


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Membership in Associations

Business and Management

  • Ayala Business Club Cebu, Inc.
  • Cebu Business Park Association, Inc.
  • Cebu Chamber of Commerce and Industry
  • Chamber of Real Estate and Builders’ Association, 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.

 

Sustainability Reporting

  • Global Reporting Initiative GOLD Community

 

Environmental and Ecosystems Conservation

  • Philippine Business for the Environment
  • Cebu Uniting for Sustainable Water Foundation

Joint Message from the Chairman and the President

Cebu Holdings, Inc. (CHI) marks its 30th year in business as one of the country’s premier property developers and a leading advocate of sustainable land development.

Now a benchmark for excellence in property development and good corporate governance in the region, our Company has grown mixed-use estates that have driven business growth in the Visayas region over the past three decades. We have also delivered concrete sustainability solutions at scale, proving that a profitable business can grow parallel with social and environmental values.

Our unwavering vision to bring inclusive economic growth has enriched our sense of community and our pride of place, while contributing to Cebu’s unprecedented development over the years.

 

30th Year Milestones

We are pleased to celebrate our 30th founding anniversary as a record year. Revenues significantly grew by 20 percent to P3.7 billion versus 2017’s P3.1 billion. Net income is at a record high at ?857.1 million, 14 percent higher than the previous year’s P753.4 million.

Since breaking ground in Cebu Business Park in February 1990, we have progressively expanded our initial 50-hectare asset base to a total of 167.2 hectares as of end 2018. More importantly, we have now transformed and enriched 155.9 hectares of this total landbank into thriving estates, commercial districts, retail destinations, and residential communities.

From only four office buildings, two residential condominiums, and a hotel with a total of 202,872 square meters of gross floor area (GFA) at Cebu Business Park in the 1990s, our flagship property now has 34 office and corporate towers, 11 residential condominiums, a regional mall and hotel, with a total of 867,574 square meters of GFA. It is now the the preferred business and lifestyle hub outside of Metro Manila.

Cebu I.T. Park, meanwhile, has grown significantly since starting as a short strip of dining and retail outlets and a corporate tower in 1996. In a span of 20 years, Cebu I.T. Park has become a catalyst in diversifying Cebu’s focus on manufacturing and tourism into other sectors such as services, construction, and the BPO industries. Today, Cebu I.T. Park hosts 27 buildings with a total of 422,000 square meters of GFA, and is home to over 70 percent of Cebu’s BPO industry. Cebu I.T. Park has also become a new lifestyle capital of the province that complements Cebu Business Park’s position as our prime business and commercial center.

Recognizing that our success is contingent on the success of our communities, we have strived to create more jobs and economic opportunities for Cebuanos. Starting with only 400 jobs in the ‘90s, our estates, properties, and various business ventures now generate a total of over 94,000 jobs with over 3,000 small businesses providing ancillary services.

Now a benchmark for excellence in property development and good corporate governance in the region, our Company has grown mixed-use estates that have driven business growth in the Visayas region over the past three decades.

Boosted by this surge in economic activity and driven by a more cohesive strategy and tighter organizational structure, we are proud to report that our Company continues to be at a strong position at the end of 2018.

As we created more platforms for larger economic opportunities, we likewise intensified our conservation and preservation efforts as part of our continuing sustainability initiatives. We increased our efficiency in the use of our resources as well as managed waste and emissions of our operations. We improved pedestrian mobility and transit connectivity within our estates, by enhancing the public transport network, making our streets more walkable, and opening two new access roads at Cebu I.T. Park. We continue to champion environmental initiatives such as Assisted Natural Regeneration of identified carbon forest sinks, waterway and coastal clean-ups, and native-tree growing.

 

Executing Key Strategic Priorities in 2018

Our Company has managed to steer through 30 years of a constantly changing business environment to become one of Cebu’s strongest and most dynamic companies. This held especially true in the past year, as we maximized resources and seized opportunities brought by the country’s continued steady rise as one of Asia’s best-performing markets.

The Philippine economy continued to sustain high growth rates, driven by a rise in our exports and strong domestic consumption and public-sector spending based on reviews by the Oxford Business Group and other economic think tanks.

Boosted by this surge in economic activity and driven by a more cohesive strategy and tighter organizational structure, we are proud to report that our Company continues to be at a strong position at the end of 2018. Total assests grew by 28 percent to P26.3 billion, and stockholder’s equity grew by 15 percent versus last year’s.

We continue to enhance our existing estates while developing new growth centers in Cebu. In August 2018, Seda Ayala Center Cebu in Cebu Business Park opened with 301 rooms. We also broke ground for The Flats at both Cebu Business Park and Cebu I.T. Park last December 2018. Once completed, these innovative shared living spaces will offer a total of 852 rooms.

Central Bloc, the 2.2-hectare mixed development at Cebu I.T. Park retail will open in 2019. Upon completion, this development will have a regional mall, two office towers and a Seda hotel.

 

Accelerating Development

We are optimistic to be celebrating our 30th anniversary at a time when the future of retail and tourism in Cebu is at its brightest. Demand for tourism infrastructure and retail spaces in and around Cebu City continues to grow, and CHI is well-prepared to capture a significant share of these opportunities.

Already, we have made proactive strides toward expanding into new markets and replicating our success in Cebu Business Park and Cebu I.T. Park into other key cities in Metro Cebu, such as Mandaue and Lapu-Lapu.

Construction for our two new estates in key cities in Metro Cebu remains on track. Land development is already complete and mall construction is ongoing at Gatewalk Central in Mandaue City, while land development at Seagrove in Lapu-Lapu City is also underway.

With the expected opening of various developments including Central Bloc in Cebu I.T. Park in 2019, Seagrove in 2020, and Gatewalk Central in 2021, we will reach a total of 304,222 square meters retail
GLA, 219,119 square meters office GLA, three hotels with 716 rooms and two dormitories with 852 rooms in the next five years – making us the largest full-line property developer in the Visayas.

 

Intensifying Sustainable Change 

Throughout the last 30 years, Cebu Holdings has become an intrinsic part of Cebuano society. We have hosted communal programs and activities that are now integral to the lives of Cebuanos. Our communities have celebrated their own personal milestones in our malls. We have partnered with various barangays to accelerate job creation. Ultimately, we have strived to build enduring Cebuano institutions that serve society at large and not only our immediate corporate goals.

Cebu Holdings’ vision has always been about enriching the lives of the communities we serve. In the years to come, we will continue to improve corporate and shareholder value by remaining true to this vision and by providing opportunities for sustainable growth and development.

We thank all our customers, partners, employees, and the entire province of Cebu for 30 years of growth and innovation. Here’s to another 30 years of unity and heightened collaboration.

 

 

Where We Operate


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2017 Sustainability Performance Highlights

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OUR CAPITALS

CHI utilized the following capitals during our 2018 operations:

Natural

  • 167 hectares of land
  • 89,531 GJ total energy consumed
  • 361,687 m³ total water consumed

Human

  • 14,986 employees & outsourced personnel

Manufactured

  • 155.9 hectares of developed estate

Intellectual

  • P12M spent on technical consultants & other professionals

Financial

  • P60.2B capital expenditure for CHI and ALI projects in Cebu

Social and Relationship

  • 17 LGUs & 2 civil society orgs engaged

 

OUR BUSINESS ACTIVITIES

CHI’s operations and business activities follow an expanding cycle of land acquisition, collaboration, development and transformation, and innovation. We acquire land, nurture partnerships, develop and transform land into high-value estates, build and lease out retail and office spaces, sell commercial and residential lots, and begin the cycle anew by expanding our land holdings to enrich more areas. The cycle expands through disruptions and innovations that lead to the discovery of fresh business models and new income streams.

 

MARKET OUTLOOK

Over the past five years, Cebu Business Park and Cebu I.T. Park charted continuously increasing occupancy trends. Even at a 30 percent premium versus other locations, average vacancy rates in CBP and CITP are only at around 1.7 percent. This vacancy rate is also significantly lower than the 11 percent vacancy rate in other developments in Cebu. All these point to the continued high demand for the kind of office and retail spaces that CHI creates and provides.

The GDP per capita of Central Visayas has grown from P69,218 in 2009 to P134,288 in 2017 according to the PSA. In addition, various economic outlook researches predict Cebu’s outsourcing workforce rising by 5 percent to 10 percent yearly over the next three years. The growing middle class, as well as the growing count of the young professional demographic ages 25-35, also point to heightened economic activity in Metro Cebu over the next years. These all create positive market outlook scenarios not only for CBP and CITP but more so for CHI’s upcoming estates in Mandaue and Lapu-Lapu.

The continued improvement and expansion of the Mactan Cebu International Airport, the growing number of direct international flights to Cebu and the lower travel costs, the complementary improvement of Metro Cebu’s road network, and the booming medical tourism industry all point to a steady increase in tourist arrivals and ease of traffic movement in Metro Cebu and the entire province.

 

VALUE WE SHARED

Communities

  • P 33 M worth of contribution as community investment
  • CONTINUOUS ENGAGEMENT on sustainability-related projects with communities including barangays Luz, Mabolo, Carreta, Apas, Hippodromo, and Kamputhaw

Employees

  • P 56.8 M annual employee remuneration
  • 46 hrs average training hours

Tenants

  • 134,686 sqm of quality spaces (GLA)
  • 96% occupancy rate
  • 450 filipino-owned businesses out of 650

Brokers & Suppliers

  • 994 suppliers actively engaged with CHI and its subsidiaries

 

 

OUR GALLERY