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

Our Company is a leading full-line property developer with headquarters in Cebu City, and publicly listed with the Philippine Stock Exchange since 1994.

We play a key role in creating major growth areas in the province of Cebu through socially inclusive and environmentally responsible business strategies. Our flagship project, the Cebu Business Park, remains the undisputed central business district of the capital city.

We are engaged in real estate development, including the sale of residential and office units and lease of commercial spaces.

For three decades, our business has transformed 156 hectares of land into integrated, master planned, and mixed-use eco-zones and business parks.

 

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

We provide value by engaging in real property ownership, development, marketing and management.

Our Company was registered with the SEC on December 9, 1988, with an authorized capitalization of P1.0 billion. As of December 31, 2019, our authorized capital stock is at P3.0 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

  • American Chamber of Commerce of the Philippines, Inc.
  • Ayala Business Club – Cebu Chapter
  • Cebu Business Park Association, Inc.
  • Cebu Chamber of Commerce and Industry
  • Chamber of Real Estate and Builders’ Association, Inc.
  • European Chamber of Commerce of the Philippines
  • Financial Executives Institute of Cebu, Inc.
  • International Council of Shopping Centers
  • Management Association of the Philippines
  • Mandaue Chamber of Commerce and Industry, Inc.
  • National Real Estate Association, Inc.
  • Philippine Retailers Association
  • Philippine Chamber of Commerce and Industry

 

Environmental and Ecosystems Conservation

  • Business for Sustainable Development
  • Cebu Uniting for Sustainable Water Foundation
  • Soil and Water Conservation Foundation

 

Joint Message from the Chairman and the President

FOLLOWING ITS 30TH ANNIVERSARY MILESTONE, CEBU HOLDINGS INC. (CHI) scaled record heights in its 2019 performance.

The Company ended 2019 with revenues at P4.8 billion, a 29 percent growth compared to 2018. Our recurring income business was the biggest contributor to revenue at 51 percent. The opening of a new mall and BPO office tower, as well as the addition of leasable space in our existing properties, brought leasing income up to P2.4 billion.

 

VALUABLE CONNECTIONS IN I.T. PARK

The opening of AyalaMalls Central Bloc in November last year further increased Cebu IT Park’s value. Part of the stacked two-hectare superblock development, it is a project of Central Block Developers, Inc., a partnership between CHI and parent company Ayala Land.

AyalaMalls Central Bloc is positioned to be a vibrant hang-out destination where the balance of work and play thrives. The five-level regional mall has 44,000 square meters of gross leasable area of retail, dining, and entertainment shops. Designed mainly for the BPO/IT workers and the community around Cebu IT Park, Central Bloc features the latest gadgets and technology, trendy and practical retail concepts, and refreshing dining outlets and venues to chill out.

On top of the mall, Central Bloc Corporate Center Tower One opened in December 2019 with 31,000 square meters of GLA. Soon to open is a 214room Seda Hotel and a second BPO office building which will add another 41,000 square meters of leasable space.

Aside from providing a fresh mix of shopping, dining, and entertainment options, Central Bloc improves connectivity within the IT Park by providing a pleasant pedestrian experience that links different areas of the estate.

 

REINVESTMENT, REINVENTION

At Cebu Business Park, our flagship project established three decades ago, we continue to reinvest to keep this 50-hectare development relevant. Plans are underway for a major redevelopment that will enhance the estate’s claim as the premier business and lifestyle address outside of Metro Manila.

Construction of The Flats within Cebu Business Park and Cebu IT Park is also ongoing, with the two towers expected to be completed in 2021. This venture into co-living spaces demonstrates our capability to reinvent our products to take advantage of new industry trends.

As we continuously reinvest in our estates, we also note best practices as we complete our new developments in Mandaue City and Lapu-Lapu City.

The construction of an Ayala mall and a BPO office building in Gatewalk Central is underway. Envisioned to be the new central business district of Mandaue City, the estate is designed with key sustainability features such as a 30-meter-wide landscaped promenade that promotes pedestrian access, and stormwater retention ponds per building to enhance resilience against floods.

Seagrove, located in Mactan island, is positioned as an eco-tourism destination capitalizing on Cebu’s strong tourism industry while showcasing the property’s unique natural landscape.

We also secured LGU approval to start work on the 26-hectare property in South Road Properties, in partnership with Ayala Land and SM Prime Holdings, Inc. This much-awaited development is the Company’s first venture toward the south of Cebu – an area with potential for growth and infrastructure development.

 

SUSTAINABLE TRANSFORMATIONS

These new estates are in key locations in Metro Cebu to catalyze growth with groundbreaking developments. As we have done in the past 30 years, we aim to strategically transform land and help shape Cebu’s economic and social landscapes to make a positive impact on the community.

We strive to create this economic and social impact in a sustainable manner, protecting the environment and preserving resources while developing our estates. In 2019, CHI focused on increasing efficiencies by using alternative sources of power and retrofitting properties with LED lighting. Waste collected from our business parks was composted, resulting in five tonnes of fertilizers that were used for landscaping within our developments. CHI employees and community volunteers participated in an Assisted Natural Regeneration and bamboo planting activity in Ayala Land’s carbon forest at Upland Greens in Cebu.

Moving forward, we are confident that our decades of experience in developing master-planned communities, combined with new technologies and synergies, will allow us to respond even faster to the changing needs of the market.

The initial phases of three new estates are under development. Projects in the pipeline include 109,571 square meters of office and 62,400 square meters of retail, bringing our portfolio up to 607,309 square meters of total leasable space. We will also have a total of 715 hotel room keys and 852 units of co-living spaces in the next five years.

As we prepare this message to you our stockholders, we are faced by the unprecedented challenges Covid-19 has imposed on the whole world. While this situation unfolds, our focus is on the welfare of our employees, the needs of our customers and the community, and the resilience of the Company. We face a brand-new reality in 2020 but we are confident this organization has the experience, commitment and malasakit we need to continue to be a driving force to the nation.

We thank our fellow Board members for contributing their expertise and wisdom to steer the Company through these extraordinary times; the management and employees for their dedication and hard work to realize this vision; and our shareholders for their continued trust in CHI.

Together, we will continue to enhance the business while providing hope and opportunities for more Filipinos in the communities we serve.

 

 

 

Sustainability Performance Highlights

In 2015, the United Nations adopted 17 Sustainable Development Goals that address the world’s most pressing problems across social, environmental and economic development issues. People from 193 member nations are pursuing the universal call to action to end poverty, protect the planet, and ensure the peace and prosperity of all people by 2030. Achieving the targets will require not only the government but other sectors of society to change the course of development.

The contribution of the private sector weighs heavily on the success of each goal. Cebu Holdings, Inc. (CHI), as a major player in the real estate industry of Cebu, embraces its responsibility to respond to the challenge of sustainable development.

CHI is committed to continuously improve its business strategy and sustainability performance throughout the value chain to maintain long-term strategic position. With a strong sense of responsibility to the community, it continues to implement programs that contribute to the sustainable development goals, keeping in mind its stakeholders through its various projects.

With its cross-sectoral reach, CHI is poised to act as a significant force in driving Cebu towards a sustainable future.

CHI takes a holistic but targeted approach to the Global Goals, focusing on goals relevant to its business, and honing in on areas where it could make the greatest impact.

 

CHI CONTRIBUTED TO THE FOLLOWING GOALS IN 2019:

SUSTAINABLE CITIES AND COMMUNITIES

  • CHI focuses on providing master planned, mixeduse developments that are resilient, eco-efficient, and inclusive. Through strengthened partnerships with local communities for environmental, livelihood, and disaster preparedness projects, CHI creates a sustainable setting for the growth of local economies.
  • In recent years, CHI has made several enhancements to its infrastructures, providing better services for customers and the general public. These improvements facilitated mass transport systems, additional access roads, and pedestrian and PWD-friendly facilities.

CLIMATE ACTION

  • Combined allocation of over 11,000 square meters of space used for native tree nursery establishment at CHI’s developed estates
  • Preservation of over 1,000 native trees and wildlings at Seagrove
  • Bamboo nursery establishment at Upland Greens » Nurturing a carbon forest at Upland Greens
  • Upgraded wastewater treatment facility at Cebu I.T. Park
  • Awareness training on forest and marine ecosystem
  • Survey and planning for marine ecosystem preservation and conservation for Seagrove
  • Increased volunteer program participation for environmental initiatives

RESPONSIBLE CONSUMPTION AND PRODUCTION

  • Best practices in solid waste management in real estate properties and construction projects
  • Resource conservation / materials efficiency
  • Innovative approaches to recycling and composting
  • Community partnership for livelihood through waste collection and segregation by community partner

GOOD HEALTH AND WELL-BEING

  • P 19.6 million in community investments in education, environment, livelihood, health and wellness, arts and culture, and promotion of local products
  • Over 3,000 square meters of mall space provided for exhibits, promotional activities on health and wellness by schools and health organizations
  • Continuing programs on occupational health and safety

PARTNERSHIP FOR THE GOAL

Engagement with civil society organizations, government, local merchants, and neighboring communities for:

  • Allocation of 52% of total mall GLA to support SMEs and local/ Cebu homegrown products and services
  • Provision of space to promote farm-to-market products from Cebu’s upland communities
  • Provision of spaces for environmental, educational and health awareness programs
  • Ecosystems services awareness trainings for communities
  • Provision of space and facilities for police community precincts within two estates

REDUCE INEQUALITIES

  • 100,158 jobs generated by CHI developments, including locators in its estates
  • 13% of total GLA or 12,154 square meters provided for SMEs, new business entrants, and farmers
  • 313 days of the year allocated to social enterprise or pro-bono events for SMEs
  • Skills training and learning sessions for employees and neighboring communitie
  • 4 women (out of 13) in senior leadership positions
  • Catering to special needs of mothers
  • Equal opportunities for men and women

 

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Market Outlook in 2019

CHI’s Cebu Business Park (CBP) and Cebu I.T. Park (CITP) have shown high demand despite its 30 percent premium compared with other locations. The 1.7 percent vacancy rate of CBP and CITP is notably lower than the 11 percent vacancy rate of other developments in Cebu.

Leading commercial real estate services and investment management firm Colliers International foresees CITP and CBP recording the most impressive boost in rents, with rates in Cebu expected to register an annual increase of four percent over the next three years.

Similarly, demand for office space will be steadily on the rise as Cebu continues to be an attractive location for enterprises engaged in business process outsourcing (BPO) and knowledge process outsourcing (KPO).

Leasable office space in Metro Cebu had already breached the one million square meter mark and developers are looking at options such as Mandaue and Mactan. In the last quarter of 2018, Mandaue’s vacancy rate dropped to 6.5 percent, significantly lower than its previous year’s 9.7 percent.

Central Visayas became the fourth largest economy in the country in 2018 when it recorded a gross domestic product growth rate of 7.6 percent exceeding the national average of 6.2 percent.

The expanding middle class and the increasing number of young professionals indicate a more upbeat economic activity for Metro Cebu in the next years. This outlook goes not only for CBP and CITP but also for the upcoming estates in the cities of Mandaue and Lapu-Lapu.

Tourism and business prospects alike are seen to strengthen along with the ongoing improvements of Mactan Cebu’s international airport as well as road infrastructure.

 

Strategies

CHI considers itself as part of the community where it operates. Its involvement includes taking advantage of business opportunities so that the gains enjoyed at the moment continue to bring prosperity to its stakeholders, particularly the community that it serves. This means pursuing expansion activities and introducing new projects.

 

 

 

OUR GALLERY