CPVDC 2009 net assets up by P40 million to P1.3 billion

CEBU, Philippines - Cebu Property Ventures Development Corporation (CPVDC) registered a strong financial position in 2009 with total assets increasing by P40 million to P1.387 billion at yearend.

During the company’s annual stockholders meeting held Thursday, CPVDC president Francis O. Monera reported that the company moves forward with exciting plans for 2010.

“With the dwindling inventory of prime land within the city, we are holding on to our inventory and developing projects within these properties to ensure appreciation of land and shareholder value,” Monera told shareholders.

CPVDC, a subsidiary of Ayala Land Inc. (ALI) affiliate Cebu Holdings Inc. (CHI), generated a total revenue of P217.9 million in 2009. Though it is relatively lower than the previous year’s performance, CPVDC deemed it as just an initial effect as the company shifts from short-term bulk revenue to long-term recurring income.

Net income reached P115.1 million for 2009, with after-tax margin improving to 53 percent from 50 percent of last year.

Last year, CPVDC paid dividends of 10 centavos per share or a total of P94 million. Net of dividends declared, stockholders’ equity increased by two percent to P1.249 billion by year-end.

“To help stabilize the Company’s cash flows and net income during difficult periods, we are shifting our strategy to grow our recurring income base by further expanding our leasing operations,” he said.

During the last quarter of 2009, CPVDC started horizontal development of phase two of Asiatown IT Park.

“The remaining undeveloped land within the IT Park will be the company’s major source of growth in office leasing revenues as CPVDC turns its strategy towards building offices to cater to IT and IT-enabled locators while keeping ownership of the land for future value appreciation,” he said.

Growth in the BPO/IT industry in Cebu is evident in the fast-paced development at Asiatown IT Park, Monera said.

The 12-story mid-rise eBloc Tower and Skyrise3 were completed in 2009. This brings the total leasable areas at the IT park to more thatn 127,644 square meters.

The eBloc Tower was fully-leased out last year to leading multinational companies, such as NCR Cebu Development Center Inc., and JP Morgan Chase Bank N.A.

As of end of 2009, there were 12 buildings in Asiatown IT Park, which is home of 71 locators representing 70 percent of Cebu’s BPO industry. These include some of the biggest names in the IT and BPO industry like NEC Telecom Software, IBM Philippines and Epson Software and Microsoft.

Customer care and contact centers generate many of the jobs at the park, thus, fueling the local economy with higher disposable income, Monera said.

At Asiatown IT Park, these companies include Aegis PeopleSupport, eTelecare Global Solutions, Qualfon, Xlibris Philippines and Convergys.

Other major locators in the cyber-park are Bombardier Transportation, Dash Engineering, SPI Technologies and ACS of the Philippines.

“These companies generated a total of over 13,000 jobs as of end of 2009. We are now able to generate jobs for higher value services. This translates to higher spending power among the working population, providing much needed impetus in a time of economic challenge,” Monera said.

Support services to compliment this growing industry continue to grow as well. Last year, CPVDC sold one commercial lot at phase two of the Park, which contributed to P97.3 million to total revenue.

Rental income from modular units at eOffice and retail center-- The Walk, contributed P55.9 million and P16.9 million respectively.