Cebu Landmasters Raises P4.28 Billion for Expansion into Luzon Market

Cebu Landmasters raises over P4.28B through preferred shares offering, plans strategic expansion into Luzon market, driven by strong financial performance and investor confidence.

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Mahnoor Jehangir
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Cebu Landmasters Raises P4.28 Billion for Expansion into Luzon Market

Cebu Landmasters Raises P4.28 Billion for Expansion into Luzon Market

Cebu Landmasters Inc. (CLI), a leading real estate developer in the Visayas-Mindanao region, has successfully raised over P4.28 billion through a follow-on offering of preferred shares. The offering, which was oversubscribed, included two series of preferred shares with attractive dividend rates of 7.585% per year for the four-year Series A-1 and 8.25% per year for the seven-year Series A-2.

The proceeds from the offering will be used to fund CLI's expansion plans, particularly its foray into the Luzon market. The company has already identified potential projects in Cavite and Camarines Sur, marking its first ventures outside its traditional stronghold in the southern regions of the Philippines.

CLI's decision to expand into Luzon comes on the back of strong financial performance in recent years. In 2023, the company reported a 29% increase in total earnings to P4.64 billion and a 13% growth in shareholders' earnings to P3.58 billion. These impressive results were driven by a 20% increase in total revenue to P18.8 billion, generated from its real estate development, hotel operations, and leasing business segments.

Why this matters: CLI's successful fundraising and expansion plans highlight the growing appetite for real estate investments in the Philippines, despite the challenges posed by the COVID-19 pandemic. The company's move into the Luzon market also signifies the increasing attractiveness of areas outside Metro Manila for property development, as more Filipinos seek affordable housing options in emerging urban centers.

According to CLI's Chief Finance Officer, Beauregard Grant L. Cheng, the strong demand for the company's preferred shares reflects investors' confidence in CLI's ability to deliver sustainable growth and attractive returns. "We are grateful for the trust and support of our investors, which will enable us to pursue our strategic objectives and create value for all our participants," Cheng said in a statement.

Key Takeaways

  • CLI raised over P4.28B through preferred shares offering with 7.585% and 8.25% dividends.
  • Proceeds will fund CLI's expansion into Luzon, its first ventures outside Visayas-Mindanao.
  • CLI reported 29% increase in total earnings to P4.64B and 13% growth in shareholders' earnings.
  • Strong demand for CLI's preferred shares reflects investor confidence in its growth potential.
  • CLI's expansion highlights growing real estate investment appetite outside Metro Manila.