Monday, February 05, 2007

Ayala Land affiliate lays out more projects in Cebu for 2007

Ayala Land affiliate Cebu Holdings Inc. (CHI) has laid out more projects in Cebu this year, boosted by the confidence of portfolio investors in the country as manifested by an increase in its per share value last year.

CHI president Francis Monera said the value of the Ayala Land affiliate has increased to P3.20 per share as of end of 2006 from P1.10 in 2005.

CHI, established in 1990, owns the Cebu Business Park (CBP) here, a former golf course owned by the Cebu provincial government.

CBP’s establishment helped spur economic growth in Cebu in terms of property value appreciation.

Ayala Center Cebu (ACC), located at the heart of CBP, has also triggered the development of more malls in the province.

Monera said CHI is poised to sustain the company’s performance in the previous year by pursuing the P800-million expansion plan of its retail business, ACC, and other projects such as residential and commercial developments and leisure.

He said the development of the ACC lagoon area, which will result in the availability of more than 8,000 square meters of additional leasable space, will start this year.

The rehabilitation of the former “The Village” at Asiatown IT Park here, will also start within the first half of the year.

The renovated establishment, which will use “recharging” outlets for people working in different business process outsourcing (BPO) and information technology (IT) firms located at Asiatown, is set to open by end of this year.

Asiatown is a development of CHI-subsidiary Cebu Property Ventures and Development Corp. (CPVDC) which was jointly organized with the Cebu provincial government to develop the old airport in Lahug, Cebu City.

Monera said CPVDC foresees bullish advancement in the Asiatown IT Park with the continuing boom in the IT sector.

”The increasing interest in Asiatown IT Park has brought in more locators in IT and IT-related industries, as well as facilities and services for its growing workforce,” he said.

With the sale of seven lots last year, Monera said 15 lots, with sizes ranging from 800 square meters to 1,500 square meters, are still available.

He said CPVDC welcomes the decision of several lot owners at Asiatown to construct their own buildings to serve the demand of the growing BPO market.

However, the company will eventually construct its own, he said.

”The demand for buildings is big. We need to offer more inventory,” Monera said.

Future developments in Asiatown will include a hotel, which will cater to the residential needs of foreign company executives, especially those of BPOs and call centers.

Based on its unaudited financial statements, CHI closed 2006 with a P207 million income compared to 2005’s P117 million.

The income was derived from recurring revenues of its retail and office leasing operations, and sale of residential and commercial lots, condominium units and sports club shares.

”As a company, CHI will be strengthening its organizational capability by living up to its quality, environment and health safety system certification,” Monera said.

CHI obtained last year international certifications for environmental management, quality standards, and health and safety system. (PNA).

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