Thursday, May 01, 2008 [ sunstar.com.ph ]
THE strong demand for office space has translated into a P371.7 million income for the Cebu Property Ventures and Development Corp. (CPVDC) for 2007.
The amount is 49 percent higher compared to the P250 million posted in 2006, said Francis Monera, president of CPVDC.
He also said that by year-end of 2007, the company was already debt-free.
Monera noted that the sale of eight lots in the Asiatown IT Park (AITP) last year has contributed much to the company’s growth, as these sales translated to P278.7 million of the total revenues.
Leasing revenues from the eOffice spaces, also located in AITP, amounted to P57 million.
The company’s net income is at P172.6 million which, Monera said, is an impressive 107 percent higher compared to the P83.5 million income reported for 2006.
Monera attributed the company’s growth to the booming information and communication technology (ICT) industry, referring to it as the “new economy.”
“(ICT) has brought about rapid economic transformation and adjustment in various parts of the globe,” he said.
In AITP, the only I.T. Park in the Visayas and Mindanao area accredited by the Philippine Export Zone Authority, five major constructions are currently ongoing. Upon completion, it will bring in a combined total gross leasable area of close to 78,000 square meters this year.
Considering that most of the locators in AITP operates on a 24/7 shift, CPVDC has constructed a 2,500-square meter retail development to operate this month.
Formerly known as The Village, “The Walk” will house shopping stores, bars and restaurants and will cater to the unique lifestyle evident in AITP, said Monera during a press conference Tuesday.
At the close of 2007, CPVDC records show its total asset grew by nine percent from P1.16 billion in 2006 to P1.27 billion last year.
Last December, the company also declared dividends of P0.10 per share that sums up to a P94 million cash dividend for the year.
Looking ahead, Monera said the company is still far from hitting the peak.
“What has been completed in the first phase of Asiatown IT Park’s development is just a take-off from CPVDC’s plan for further growth and progress,” he said in his report during the annual stockholders’ meeting last Tuesday.
Part of the CPVDC’s spending budget for this year, which is pegged at around P400 million, will be allotted for the development of phase two of AITP.
The second phase of AITP covers five hectares of raw land and development will commence this year.
Monera said the area is earmarked for future growth in office leasing revenues as the company positions itself into building offices to cater to more IT and IT-enabled services locators.
In this strategy, ownership of the land remains with the company for future value appreciation, he added. (DME)
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