Cebu Landmasters raises P4.3B from preferred shares

Cebu Landmasters raises P4.3B from preferred shares

MANILA, Philippines — Developer Cebu Landmasters Inc. (CLI) has raised P4.3 billion from its preferred shares offering—its first fundraising activity since its stock market debut in June 2017—to help bankroll upcoming projects.

The Visayas and Mindanao-focused company on Friday listed its Series A-1 and Series A-2 preferred shares on the local bourse.

According to the Philippine Stock Exchange (PSE), the follow-on offering was 1.43 times oversubscribed.

CLI raised P3 billion from the sale of its base offer of 3 million shares at P1,000 each. Strong demand allowed the company to exercise an oversubscription option and raise another P1.3 billion.

The shares offer annual dividend rates of 7.585 percent for the four-year Series A-1 and 8.25 percent for the seven-year Series A-2, CLI said. Holders of preferred shares are prioritized during dividend payouts and events of corporate liquidation.

Proceeds from the sale will fund the capital expenditure of six residential projects set to launch beginning in the fourth quarter of 2026, according to PSE President and CEO Ramon Monzon.

CLI currently has 37 completed projects, with 119 others in various stages of development across 16 cities in the Visayas and Mindanao.

“We have exceeded our fundraising targets through this follow-on offering, and now we are making strategic decisions on how to allocate these fresh funds that will fuel CLI’s strong expansion plans and several exciting projects,” said CLI chief financial officer Grant Cheng.

In 2023, the property developer booked a 29-percent rise in earnings to P4.64 billion driven by stronger real estate sales, hotel operations and leasing income.

Joint venture with Japanese firm

CLI also formed its first international joint venture with a Japanese real estate firm earlier this month to build a P6.4-billion residential complex in Cebu City.

READ: CLI announces first international joint venture, partners with leading Japanese property firm NTTUD Group

It will pursue the development of the two-tower facility in Cebu IT Park with NTT UD Asia Pte Ltd. (NTTUDA) through CLI NUD Ventures Inc. The first tower consisting of 500 units will be launched in the fourth quarter of the year.

Meanwhile, revenues reached P18.8 billion, a 20-percent rise on better sales from CLI’s real estate business, which includes hotel operations and leasing.

Revenues from real estate sales were also higher by 20 percent at P18.5 billion. Reservations from new projects likewise grew to P20.6 billion from P18 billion.

NTTUDA is a subsidiary of Japanese telecommunications provider NTT Urban Development Corp. It currently develops mixed-use buildings and residential properties.

The project with CLI is its first in the Philippines, NTT Urban Development president and CEO Hiroshi Tsujigami said earlier.“

Leveraging the development capabilities cultivated through our domestic and international business activities, along with CLI’s extensive track record in property development, to jointly differentiate our products and enhance the selling point, we can provide a better life for the people of the Philippines,” he said.