Cebu Landmasters seeks to double land bank

Michelle Ong, ABS-CBN News

Posted at Jun 02 2017 03:01 PM

MANILA - Cebu Landmasters said Friday it aimed to double its 60-hectare land bank after its P2.9-billion initial public offering on Friday. 

The Cebu-based developer, which focuses on the Visayas and Mindanao, has no immediate plans to venture into Luzon, said its chairman and CEO Jose Soberano. 

"We want to focus on Vismin (Visayas-Mindanao), we are strong in that area and we can manage it a lot better. We know the market much better there, we can also manage to maintain good margins if we're operating there," Soberano told reporters. 

"There are a lot of opportunities waiting for us, we're just very selective," he said. 

Cebu Landmasters is invested heavily in residential projects, which account for 95 percent of its business, while the rest are business process outsourcing offices.

"As you can see, our strength is the turn-around income, we're gonna be there. That's where we get our margins, we turn our projects very fast. At the same time, as the pie gets bigger, this thing, recurring income will have to catch up strongly. It will take a while to reach 20 percent target. That's achievable (in) 5 years," Soberano said. 

The company is also bullish on its proposed reclamation project in the south of Cebu, the 100 hectare Minglanilla- Ming Mori Reclamation and Industrial Park development, where it has a 20-percent stake. 

"We all know that in the Mactan Export Processing Zone, we've run out of industrial zone. Lots of foreign locators are still looking for this. This is an opportunity for us," Soberano said.