HOMEGROWN property developer Cebu Landmasters Inc. (CLI) targets to generate P10 billion in revenues by 2020 in line with its goal of becoming the preferred developer in the Visayas- Mindanao region, a company official said.
In a media briefing on Thursday, CLI chairman and chief executive officer Jose Soberano III said that in 2016, the company registered a 42.6 percent rise in revenues to P2.19 billion from P1.5 billion in 2015.
He attributed the company’s growth to its focus on the VisMin market.
“We believe that our growth story is the result of a keen understanding of the VisMin market, which is highly focused on getting the best values,” he said.
“It’s going to be a continuous growth,” Soberano said.
This year, he said they are looking at a 63.2 percent increase in revenues to an estimated P3.57 billion.
He said 2017 is expected to be the company’s “biggest year” so far as it is set to spend P12 billion on the 11 projects it plans to launch this year.
Six of these projects will be located in Cebu while five will be in other areas in the VisMin region.
Among these projects are a mid-market condominium in Davao City and a 6.6-hectare mid-market subdivision in Cagayan de Oro City. It will also launch a high-rise residential condominium project at the Cebu IT Park this year.
Based on a study by CBRE Philippines, CLI accounted for the second largest market share of condominium units in the Cebu property market last year at 11 percent, next to Ayala Land Inc., which comprised 17 percent of total condo supply.
This makes CLI the largest local developer in the Cebu residential market.
CLI said it has delivered around 11,101 residential units in various stages of construction since the company’s establishment in 2003.
CLI will also focus on increasing its recurring income to be able to attain its 2020 revenue target, Soberano said.
“And not only really on the housing side, we will also be into some recurring income activities with commercial developments,” he explained.
Part of the company’s P10 billion revenue target by 2020 will be contributed by retail income from its commercial centers.
“Retail will hit close to P4 billion,” he said.
CLI is also looking to enter more hospitality oriented developments to boost recurring income.
“We are going to go into hospitality. We’ve talked about our interest in Mactan, also in some areas. Bohol is one,” added the chairman.
In 2015, the company partnered with international serviced residences operator The Ascott Limited to establish Citadines Cebu City, which is set to open in 2019 with a total of 180 apartment units.
For this year, CLI aims to grow its net income by 81 percent to P1.25 billion.
Last year, the company’s net income grew 28.5 percent to P690 million, from P537.17 million in 2015.