CEBU CITY—Cebu Holdings Inc. has allotted close to P1 billion in capital expenditure this year on the heels of record revenues in 2007, aimed at strengthening its in the real estate and retail trade in Metro Cebu.

In a report during Tuesday’s stockholders meeting, president Francis Monera of Cebu Holdings said the company would invest P962 million, up 88 percent from last year’s expenditures.

“Our retail businesses will continue to take the bulk of our investments with the ongoing lagoon development scheduled to be completed and opened by the second semester of 2008,” Monera said.

The lagoon development will add 8,800 square meters (sq m) of gross leasable area in Ayala Center Cebu—a project of Cebu Holdings, an affiliate of Ayala Land Inc.

Cebu Holdings chairman Jaime Ayala said the capex figures reflect “confirmed and committed” projects by the company and does not include possible land acquisitions. “As we grow our business in the Visayas we will always need land. We are always on [the] lookout for land as we remain bullish on the economy,” Ayala told reporters.

The 50-hectare Cebu Business Park continues to attract locators with buildings Lexmark, Pioneer House, Security Bank, Cebu IT Tower already complete. Ongoing construction includes the Creativo, RCBC and Tower Palace.

Ayala confirmed Cebu Holdings is interested in Cebu City’s 240-hectare South Road Properties but would not elaborate on negotiations with the city government. Cebu City Mayor Tomas Osmeña earlier said Cebu Holdings, Filinvest and the SM Group had a gentlemen’s agreement to have complementary but separate projects in South Road.

In his report, Monera said Ayala Center Cebu continues to dominate the middle to high-end retail market in the Visayas, with a gross revenue of P427 million in 2007, a 7 percent growth from 2006. “High disposable income, as a result of the growth of jobs among young professionals, as well as growth in tourism, has prompted aggressive expansion on the retail front,” he said.

Average traffic in the Ayala mall increased 19 percent to some 75,000 a day, Monera added.

Cebu Holdings also dominates the luxury residential market industry with its Amara project in Liloan in partnership with Coastal Highpoint Ventures Inc.  In 2007, Amara sales contributed P222 million, or 17 percent, to  Cebu Holdings’ revenues, with phase one and two combining to around 100 lots sold out and phase three having only 12 lots more to sell.

Subsidiary Cebu Property Ventures and Development Corp., which operates the 25-hectare Asiatown IT Park, reported 66,500 sq m in leasable area and creating 11,637 jobs mostly through offhsoring and outsourcing companies as well as food and retail support shops.

DEVELOPER Shang Properties Inc. reported a 55.4-percent rise in net profit in 2007 to P944.5 million from P607.9 million a year earlier.

Cebu Holdings allots nearly P1B in capex

CEBU CITY—Cebu Holdings Inc. has allotted close to P1 billion in capital expenditure this year on the heels of record revenues in 2007, aimed at strengthening its in the real estate and retail trade in Metro Cebu.

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Controlling jurisprudence has been consistent that organization and commencement of transactions of corporate business are but conditions subsequent and not a prerequisite for the acquisition of the corporate personality.