Messages


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.