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.



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.



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.



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.