Messages


Joint Message from the Chairman and the President

Cebu Holdings, Inc. sustained its growth path in 2017 as we focused on the continuous expansion and enhancement of our mixed-use estates in key cities in Metro Cebu. Through strategic partnerships, we have been able to move faster to build new economic districts that will extend the gains of property development to more communities.

Our company has expanded its footprint across the province of Cebu and is now actively managing and developing four estates. Aside from Cebu Business Park and Cebu I.T. Park in Cebu City, we are now in Gatewalk Central in Mandaue City and Seagrove in Lapu-Lapu City. We are also present in Liloan through our seaside residential community, Amara.

Creating and constantly evolving our mixed-use estates is our way of delivering on our commitment to foster economic growth and create livelihood opportunities for Cebuanos. We take pride in knowing that over 91,000 jobs were created by over 200 local and foreign companies within Cebu Business Park and Cebu I.T. Park. In 2017, we also noted over 3,000 small business providing ancillary services such as food, transportation, and accommodation around the estates.

In the same year, we grew our net income by 11 percent to P753.4?million and revenues by 14 percent?to P3.1 billion. Our performance was driven by solid contributions from our leasing business, which accounts for 69 percent of the total revenue.

 

Cebu Business Park and Cebu I.T. Park

Property development and commercial leasing remained robust as we enhance our existing estates, Cebu Business Park and Cebu I.T. Park.

Ayala Center Cebu, located at the?heart of Cebu Business Park, continued to enjoy high occupancy rate of 97 percent, as well as increasing merchant sales. The mall was also recognized as Shopping Center of the Year – Large Category in 2017 by the Department of Trade and Industry and the Philippine Retailers Association for its initiatives to constantly improve the retail experience.

We completed Tech Tower which added 16,214 square meters to our total leasing portfolio and finished the BPI Cebu Corporate Center—an iconic project in partnership with Alveo Land that offers office units for sale.

Property sales also improved as we sold units of Ayala Land Premier’s 1016 Residences and Park Point Residences, as well as Alveo’s Sedona Parc also in Cebu Business Park.

In 2018, Cebu Business Park will be home to the first Seda Hotel in Cebu. The homegrown hotel brand by Ayala Land will have 301 rooms and will become a central convergence place for business travelers.

Meanwhile at Cebu I.T. Park, we are currently constructing Central Bloc,?a stacked two-hectare development which will showcase a regional mall offering close to 50,000 square meters of retail space, two more o ce towers and another 214-room Seda Hotel.

 

Gatewalk Central

The construction of Gatewalk Central in Subangdaku, Mandaue, is on full speed and on target, as we expect this mixed-use estate to open its first phase in 2021. The 18-hectare mixed-use estate will offer a dynamic and highly-energized lifestyle experience with modern residential and commercial components. It will feature a regional mall which will add a total gross leasable area of 115,000 square meters to our retail portfolio upon its completion.

 

Seagrove

The year 2017 was highlighted by the launch of our newest mixed-use estate in Punta Engaño, Lapu-Lapu City. Located near Cebu’s airport and seaports, the 14-hectare Seagrove?is expected to become an exciting bayside, eco-fun destination, adding a new dimension to the leisure and tourism industry in Cebu.

Its initial phase includes the development of the first Holiday Inn Resort in the Philippines, as well as?a boardwalk promenade with retail and entertainment concepts. We?will be pouring in about P4 billion?in investment for land cost and development, as well as the hotel and retail components during this period.

 

Sustainability and Innovation

As we accomplish our goals as a company, it is important that the values of innovation and sustainability are well-established in our operations.

Our mixed-use estates strive to become models for sustainable development and introduce innovations in line with the four?focus areas of Ayala Land, namely Site Resilience, Pedestrian Mobility and Transit Connectivity, Eco-efficiency and Local Economic Development.

We plan and design our developments to make it more resilient to changes in the environment by creating a healthy balance of green open spaces and built-up areas.

As we prepare for our bayside development, Seagrove, in Lapu-Lapu, we initiated environment protection activities such as coastal cleanups with employees and coral reef studies to determine possible areas for nursery and rehabilitation sites in the area.?We likewise collected wildings and seedlings of existing native and endemic beach forest tree species which we will propagate and use for future landscaping requirements.

We also introduced innovations?that push for pedestrian mobility?and transit connectivity, such as the completion of new bus stops within Cebu Business Park and Cebu I.T. Park, serving passengers of a scheduled bus service that travels to Northern and Southern Cebu.

In the management of our estates,?we constantly strive for efficient resource use and effective waste management. In 2017, we invested in various improvements including a new wastewater treatment facility to serve the growing community in Cebu I.T. Park.

Our efforts in line with sustainability were featured in a publication of?the United Nations Development Programme and the Philippine Business for the Environment. The book called Transformational Business cites Cebu Business Park as the top example of how large-scale infrastructure in provincial capitals can bring inclusive economic growth while driving business forward. According to the book, “CHI has poured in over P55 billion in land and infrastructure investments to grow and expand Cebu Business Park and Cebu I.T. Park—now two of the leading economic hubs in the south.”

It also cites our shared-value program, Agbayay para sa Kalikupan, as a “sustainable solid waste management model that bridges waste management with entrepreneurship, and CSR with inclusive development.”

 

Committed to Nation Building

As a result of meaningful collaborations, CHI has lived up to its promise as a catalyst for progress in the Visayas, driven mainly by local talent. Through our mixed-use estates, we concretize our commitment to nation- building and sustainable development.

As we celebrate our 30th anniversary in 2018, we are inspired to create communities that will contribute to?the development and future progress of Cebu and the Visayan region. We are setting up the platform to establish new operational frameworks that will increase our ability to respond to an ever-changing market, starting with the company’s planned merger with its subsidiary, Cebu Property Ventures and Development Corp. We are optimistic that with these advancements, Cebu Holdings is well-positioned for growth to deliver better value to you, our shareholders.