Cebu Landmasters Inc., a leading property developer in the Visayas and Mindanao, raised over P4.28 billion in its follow-on offering of preferred shares, exceeding its fundraising target on strong investor demand.
The preferred shares offer dividend rates of 7.585 percent for the 4-year Series A-1 and 8.25 percent for the 7-year Series A-2. These proceeds will be support CLI’s strategic expansion initiatives and ongoing project developments.
“The success is a strong indicator of the growing market trust and confidence in the company’s proven track record of generating returns through its business,” said Grant Cheng, CLI chief finance officer.
CLI is expanding its market reach to Luzon, an area that is virgin territory for listed property developer.
Cheng said CLI is looking at several offers for partnerships in strategic locations in Luzon such as Calabarzon, Pampanga and Naga City. He said Luzon should account for about 5 percent of company sales in the first year of operation and as much as 30 percent by the fifth year.
“Our engagement with the capital markets has been instrumental in fueling our growth trajectory. From our IPO for common shares in 2017 to a maiden bond offering in 2022, and now this initial issuance of preferred shares, we have strategically diversified our capital-raising efforts,” said CLI chairman and chief executive officer Jose Soberano III.
Cheng said CLI will continue to focus on its core competence—residential, hotel, commercial and office developments. “We probably wouldn’t do projects with a gaming component. That’s not our strength,” he said.
Cheng said industrial estates are also not in the pipeline, primarily because it doesn’t provide the high returns other segments such as hospitality and residential developments bring.
CLI’s CFO said the company is also preparing to establish and eventually list its own real estate investment trust by building a portfolio that provides recurring income such as hotels and diversifying its locations and market segments.
