CLI ready to conquer Luzon

April 15, 2024 | 12:00am

MANILA, Philippines — Cebu Landmasters Inc. (CLI), a listed property developer focused in the Visayas and Mindanao, is poised to conquer Luzon with more locations eyed in the region for future expansion.

“We’re looking at potential expansions into really what we feel are high potential places in Luzon,” CLI chief finance officer Grant Cheng said.

“So starting from Naga in Camarines Sur and the Calabarzon area. We’re getting offers from really landed families with prime lots for development, all the way to the north in Pampanga. There are pieces of land that are being offered to us, so we have to strategically look at them one by one,” he said.

Cheng said CLI’s main strategy for its Luzon foray is to expand with its core signature business, which is in the affordable and economic housing as well as the middle market segments.

“So right now, we are identifying strategic locations. And we are on the verge of making certain acquisitions in provinces in Luzon where we can first launch that affordable housing plan that we have which is Casa Mira,” Cheng said.

“It is our most popular brand. It is our housing product that has found the most success and penetrates the markets very well. And it is also the brand that addresses the most urgent pressing needs of the housing backlog of the Philippines,” he said.

Cheng said CLI is also looking to be more strategic with some potential joint venture partnerships in Luzon.

“We have been approached by several land owners within Metro Manila who have prime pieces of property in Metro Manila as well as greater Metro Manila and in other parts of Luzon where we can jointly develop the properties that they own,” Cheng said.

“So for those, it’s a little bit more strategic, meaning that we have to assess each land and the project design concept and the product price offering on a case to case basis. So it’s not like we have a brand that we can deploy, and we will implement for a particular piece of land. So there is no template for the strategic opportunities that we’re looking at,” he said.

CLI has previously expressed plans to expand in Luzon after establishing leadership in Visayas and Mindanao.

The company currently has a diversified product portfolio of residential, office, hotel retail and estates.

It also provides housing needs to the high-end, middle, economic and socialized housing segment.

For this year, CLI has earmarked P14.5 billion for capital expenditures to support the company’s new development in the pipeline worth P27 billion, including expansion projects in various regions such as Butuan, as well as for land acquisition, particularly for its inaugural Luzon project.

“If we’re going to go into Luzon as our first foray, then it probably won’t be more than five to 10 percent in the in the first year of operation,” Cheng said, referring to the portion of revenues or net income expected to come from Luzon.

Cheng, however, said this is seen increasing as the company ramps up its operations and identifies more places to expand.

“So I imagine, with our expansion in Luzon, give it a few years. But I wouldn’t be surprised if a few years down the road, it could be anywhere from 25 to 30 percent of our pie, again, depending on how much we decide to expand in that region and how we can sustainably grow and protect our market as well in the regions where we’re already in,” he said.

CLI said its strong financial performance, diversified revenue streams, strategic expansion initiatives and a robust pipeline of upcoming projects position the company for continued growth and success in the coming years.