CEBU LANDMASTERS, Inc. (CLI) is eyeing to increase its capital expenditure (capex) budget this year to fund the company’s major projects, its president said.
“Our capex should be in the region of about last year’s; we were at P13 billion. For 2024, we have not concluded that yet, but it will be higher. We are growing,” Jose R. Soberano III, president and chief executive officer of Cebu Landmasters, told reporters on the sidelines of a PSE forum on Wednesday.
The company’s capex will be funded by a combination of equity and debt, Mr. Soberano said, adding that the company is also banking on its preferred shares offering.
“We have so many projects. We have township projects, let us not forget about reclamation projects, we have big ticket projects and a hotel to complete,” Mr. Soberano said.
The company has an ongoing township project in Davao City and Cagayan de Oro. Additionally, it has the Minglanilla Techno Business Park, a 100-hectare reclamation project located in Tulay, Calajo-an, and Tungkil Minglanilla, Cebu.
“Right now, by the middle of this year, we will have four operating hotels in total. We have 10 that will be fully operational by 2026. Six are being completed,” Mr. Soberano said.
According to the company’s website, CLI’s operating hotels include Citadines Cebu City and lyf Cebu City, while its Mercure Cebu Downtown is expected to be completed in 2024.
The company is still undertaking the construction of its Abaca Resort Mactan, Citadines Bacolod City, Citadines Paragon Davao, Radisson Red, and Citadines Bacolod City.
Separately on Thursday, the Securities and Exchange Commission (SEC), through its Commission En Banc, approved the issuance of CLI’s preferred shares worth up to P5 billion.
The SEC has allowed CLI’s planned public offering of up to three million Series A preferred shares with an oversubscription allotment of up to two million preferred shares, priced at P1,000 apiece, pending the company’s compliance with certain requirements.
It is said that the company could yield net proceeds of up to P4.96 billion from the offering, which will fund its project developments and capex for real estate plans and other general corporate purposes.
The preferred shares offering, which are perpetual, cumulative, nonvoting, nonparticipating, nonconvertible, and redeemable Philippine Peso-denominated Series, will be issued from March 19 to April 2 and listed on the main board of the Philippine Stock Exchange.
The company has tapped BPI Capital Corp., China Bank Capital Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. as joint lead underwriters for the offer.
At the local bourse on Thursday, shares in the company closed four centavos or 1.46% higher at P2.78 apiece. — Ashley Erika O. Jose